Exercise 8-3a

Sutton's Electronic Repair Shop has budgeted the following time and material for 2017. Suttan's budgets 4,000 hours of repair time in 2017 and will bill a profit of $14 per labor hour along with a 20% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $105,000. On January 5, 2017, Sutton's is asked to submit a price estimate to fix a 72-inch flat-screen TV. Suttan's estimates that this job will consume 8 hours of labor and $250 in parts. Compute the labor rate for Sutton's Electronic Repair Shop for the year 2017