Forest & Tree Company provides computer repair services for the community. Jack Dee's computer was not working, and he called Forest & Tree for a home repair visit. Forest & Tree Company's technician arrived at 2:00 p.M. to begin work. By 4:00 P.M. the problem was diagnosed as a failed circuit board. Unfortunately, the technician did not have a new circuit board in the truck, since the technician's previous customer had the same problem, and a board was used on that visit. Replacement boards were available back at Forest & Tree Company's shop. Therefore, the technician drove back to the shop to retrieve a replacement board. From 4:00 to 5:00 p.M., Forest & Tree Company's technician drove the round trip to retrieve the replacement board from the shop. At 5:00 p.m. the technician was back on the job at Jack's home. The replacement procedure is somewhat complex, since a variety of tests must be performed once the board is installed. The job was completed at 6:00 P.M. Jack's repair bill showed the following:

Jack was surprised at the size of the bill and asked for some greater detail supporting the calculations. Forest & Tree Company responded with the following explanations:

The labor charge per hour is detailed as follows:

Further explanations in the differences in the hourly rates are as follows:

1. If you were in Jack's position, how would you respond to the bill? Are there parts of the bill that appear incorrect to you? If so, what argument would you employ to convince Forest & Tree Company that the bill is too high?
2. Use the headings below to construct a table. Fill in the table by first listing the costs identified in the activity in the left-hand column. For each cost, place a check mark in the appropriate column identifying the correct cost classification. Assume that each service call is a job.

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Circuit board Labor charges Total $ 85 285 $370