Paul's Auto Repair uses time and material pricing. The body shop, which anticipates 10,000 direct labor hours of activity, has the following data:

Annual overhead costs:
Material handling and storage	$ 26,000
Other overhead costs	86,000
Annual cost of materials used	193,000
Labor rate per hour, including fringe benefits	20.75
Hourly charge to achieve profit margin	13.75

The time charge per hour is (Do not round your intermediate calculations.):

$23.35.

$31.95.

$34.50.

$43.10.

None of these.