Lee Ltd. uses time and material pricing. The company’s maintenance department has budgeted 8,000 direct labour hours of activity for the period and estimates the following costs:

Labour and benefit costs $200,000
Overhead costs (excluding material handling and storage) $175,000
The company also has a target profit of $180,000.

The company's time charge per hour is:

a. $25.00

b. $47.50

c. $69.38

d. $46.88