Cheyenne Homes is a house cleaning service . As a special feature , Cheyenne Homes will supply flowers or small decorator items when they clean a home . They use a time and material billing policy . Based on the following costs and desired profits , calculate the hourly rate for labour and the material loading charge for Cheyenne Homes , assuming that in 4 , 500 hours per year they clean 730 homes . Invoice costs per year are $ 175 , 000 . Labour Materials Maid's Salaries 57 , 500 Office supplies 18 , 450 15 , 750 Supplies 22 , 750 Overhead on equipment* 5, 165 Advertising costs 3 , 105 Desired profit $ 10 per hour 20%/0