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AA 23-1 Company Analysis LO A1 Apple offers device service and repair through its AppleCare program. Assumed data follow. Direct labor rate $ 40 per

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AA 23-1 Company Analysis LO A1 Apple offers device service and repair through its AppleCare program. Assumed data follow. Direct labor rate $ 40 per direct labor hour Non-materials-related overhead $ 10 per direct labor hour Materials-related overhead 4% of direct materials cost Target profit margin (on both conversion and direct materials) 40% Required: 1. Compute time charge per hour of direct labor (in $). 2. Compute materials markup per dollar of direct material cost (in %). 3. Use time and materials pricing to compute the price for a local college. Apple estimates the obligation to this 1,000 direct labor hours and $35,000 of direct materials cost. 1. Time charge per hour of direct labor per hour 2. Materials markup % 3. Time and materials price

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