Forrest Painting Service has budgeted the following time and material for 2016:

BUDGETED COSTS FOR 2016Time ChargesMaterial ChargesPainters' wages and benefits$36,000Service manager's salary and benefits$23,000Office employee's salary and benefits12,0003,000Cost of paint50,000Overhead (supplies, utilities, etc.)16,0008,500Total budgeted costs$64,000$84,500

Forrest budgets 4,000 hours of paint time in 2016 and will charge a profit of $12 per hour, in addition to a 25% markup on the cost of paint.

On February 15, 2016, Forrest is asked to prepare a price estimate to paint a building. Forrest estimates that this job will take 12 labor hours and $500 in paint.

Compute the labor rate for 2016.

Labor rate$

Compute the material loading charge rate for 2016.

Material loading charge

%

Calculate a time-and-material price estimate for painting the building.

Total estimated bill$

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