Provided is the following data for Marina Bay, a boat repair shop.

Repairs Material loading charges

Mechanic's wages and benefits $103,500

Parts manager's salary and benefits $11,500

Office employee's salary and benefits 20,700 2,300

Other overhead(supplies, depreciation, 26,800 14,400

property taxes, advertising, utilities)

total budgeted costs $151,000 $28,200

Employees worked 5,000 hours for repair work. Marina Bay desires a profit margin of $8 per hour.

The total invoice cost of parts and materials used was $120,000. Marina Bay desires a 20% profit margin on the invoice cost of parts and materials.

Required

Using the time and material pricing

1. Calculate the rate that would be charged per hour of repair service.
2. Calculate the materials loading charge that would be used in billing jobs. The materials loading charge should be expressed as a percentage of the invoice cost.
3. Calculate the charge for a job that requires 50 hours of labor and $3,600 in parts and materials