Exercise 23-15 Time and materials pricing A1 HH Auto Repair reports the following information for the coming year Labor rate, including fringe benefits Annual labor hours Annual materials (parts) purchases Annual overhead costs: Materials purchasing, handling, and storage other overhead (depreciation, Insurance, taxes, rent) Target profit margin (on both labor and materials) $ 38 per labor hour 10,200 hours $2,020,000 $ $ 404,000 153,000 32 1. Compute the price (rate) per hour of direct labor. 2. Compute the materials markup (in %). 3. What price should the company quote for a job requiring four labor hours and $600 in parts? 1. Total labor rate per hour 2. Materials markup 3. Total price quote