Problem 15-45 Time and Material Pricing (LO 15-9)

Southern Tier Heating, Inc., installs heating systems in new homes built in the southern tier counties of New York state. Jobs are priced using the time and materials method. The president of Southern Tier Heating, B. T. Ewing, is pricing a job involving the heating systems for six houses to be built by a local developer. He has made the following estimates.

Material cost $78,000

Labor hours300

The following predictions pertain to the company's operations for the next year.