=+SA 18-4 Classifying costs 852 Chapter 18 Managerial Accounting Concepts and Principles Further explanations in the differences in the hourly rates are as follows:

First hour:

Base labor rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25 Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Overhead (other than storage and handling) . . . . . . . . . . . . . . . . . . . . . . . 10 ____ Total base labor rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45 Additional charge for first hour of any job to cover the cost of vehicle depreciation, fuel, and employee time in transit. A 30-minute transit time is assumed. . . . . . . . . . . . . . . . . . . . . . . 10 ____ ____

$55 ____