HH Auto Repair reports the following information for the coming year.

Labor rate, including fringe benefits$47per labor hourAnnual labor hours11,100hoursAnnual materials (parts) purchases$2,110,000Annual overhead costs:Materials purchasing, handling, and storage$422,000Other overhead (depreciation, insurance, taxes, rent)$177,600Target profit margin (on both labor and materials)30%

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 five labor hours and $690 in parts?

Questions To Answer

1.Total labor rate per hour

2.Materials markup

3.Total price quote