Presented below are data for Harmon Electrical Repair Shop for next year.

Time charge Material loading charge

Total repair-technicians wages $130,000 -

Fringe benefits 30,000 -

Overhead 20,000 80,000

The desired profit margin per labor hour is $10. The material loading charge is 40% of invoice cost of parts and materials. Harmon estimates that 8,000 labor hours will be worked next year.

1. Calculate the rate charge per hour of labor (1.0 marks).
2. If Harmon repairs a TV that takes 4 hours to repair and uses parts of $50, compute the bill for this job (1.0 marks).