Samsung’s service and repair program competes with Apple’s AppleCare. Assumed data follow.

Required

1. For both Samsung and Apple, compute time charge per hour of direct labor (in $).
2. For both Samsung and Apple, compute materials markup per dollar of direct material cost (in %).
3. For both Samsung and Apple, use time and materials pricing to compute the price quote for a local college. Both companies estimate the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost.

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Samsung Apple Direct labor rate. Non-materials-related overhead. Materials-related overhead...... $38 per direct labor hour $40 per direct labor hour $10 per direct labor hour $10 per direct labor hour 6% of direct materials cost 4% of direct materials cost Target profit margin (on both conversion and direct materials)... 40% 40%