HH Auto Repair reports the following information for the coming year. Labor rate, including fringe benefits $ 41 per labor hour Annual labor hours 10,500 hours Annual materials (parts) purchases $ 2,050,000 Annual overhead costs: Materials purchasing, handling, and storage $ 471,500 Other overhead (depreciation, insurance, taxes, rent) $ 178,500 Target profit margin (on both labor and materials) 37 % 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places.) 2. Compute the materials markup (in %). 3. What price should the company quote for a job requiring five labor hours and $630 in parts? (Round your answer to 2 decimal places.)

Return to question 2 HH Auto Repair reports the following information for the coming year. 10 points 41 per labor hour 10,500 hours $2,050,000 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) $ $ 471,500 178,500 37 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places.) 2. Compute the materials markup (in %). 3. What price should the company quote for a job requiring five labor hours and $630 in parts? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 1. 2. Total labor rate per hour Materials markup Total price quote $ 79.46 6X % $ 1,092.46 3