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ABA Farms and its subsidiary Jones uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including
ABA Farms and its subsidiary Jones uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 75 per hour Annual labor hours 6,350 hours Annual materials purchases $ 1,206,250 Materials purchasing, handling, and storage $ 241,250 Overhead for depreciation, taxes, insurance, etc. $ 666,750 Target profit margin for both labor and materials 25 % What is the total price for a project requiring 160 direct labor hours and $150,000 of materials?
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