Exercise 15-37 Time and Material Pricing (LO 15-9)

Refer to the following data for Sydney Sailing Supplies:

Time Charges - Labor time 200 hours

x Rate x 45 per hour

Total $9,000

Material charges - Cost of materials for job $8,000

+ charge for material handling and storage 320

Total $8320

Total price of job - Time $9,000

Material $8,320

Total $17,320

Suppose the Repair Department of Sydney Sailing Supplies adds a markup of 5 percent on the material charges of a job (including the cost of material handling and storage).

1. Compute the material component of the price. (Do not round intermediate calculations.)
2. Compute the new price to be quoted on the yacht refurbishment.