Computer Repair Inc. uses time and materials pricing, and each year it reviews its rates in light of the actual costs incurred in the prior year. Actual costs incurred last year in connection with repair work and in connection with the company's parts inventory are shown belovu Customers were billed for 20000 hours of repair work last year. The company has a target prot of $10 per hour of repair service time and a target profit of 40% of the invoice cost of parts used. During the past year, the company billed repair service time at $50 per hour and added a materials loading charge of 40% to parts. Management feels these rates may now be inadequate, since costs have risen somewhat over the last year. Repairs Parts Repair technicianswages $488,888 Repair service managerisalary 56,888 Parts manageresalary $ 68,888 Repairs and parts assistantsalary 28,888 7,588 Retirement benefits (28% of salaries and wages) 112,968 13,588 Health insurance {5% of salaries and wages) 28,248 3,375 Utilities 128,888 24,888 Truck operating costs 19,288 Property taxes 9,288 5,488 Liability and fire insurance 6,728 3,888 Supplies 1,288 225 Rentbuilding 38,488 33,888 Depreciationtrucks and equipment 59,288 Invoice cost of parts used 688,888 Total costs for the year $968,888 $758,888 Required: 1. Using the above data, compute the following: a. The rate that would be charged per hour of repair service time using time and materials pricing. Cost of repair service time per hour Cost of materials pricing per hour b. The materials loading charge that would be used in billing jobs. The materials loading charge should be expressed as a percentage of the invoice cost. Total materials loading bill Total materials loading charge 2. Assume that the company adopts the rates that you have computed in (1) above. What should be the total price charged on a repair job that requires 6 hours of service time and parts with an invoice cost of $500