Friendly Car Repair performs routine maintenance on rental vehicles. The following materials, parts, and direct labor are needed to repair the rental fleet:

Expected hours of repair time next year 10,000 hours labor rate including fringe benefits $180,000 Cost of material ordering, handling and storage $400,000 Other repair costs (except for materials related costs) $200,000 Invoice cost of material used in the repair department $1,000,000 Hourly charge to cover profit margin $7 per hour Mark up on invoice cost of parts 20%

Required: 1. Compute the time rate per hour and the material loading charge that would be used to bill jobs. 2. If you know that the company will be using the rates calculated above to price a job that requires 4 hours of repair and $1300 in parts. Compute the amount that would be billed for the job.