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Ralphs 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

Ralphs 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 $ 30,000

Other overhead costs 90,000

Annual cost of materials used 195,000

Labor rate per hour, including fringe benefits 21.75

Hourly charge to achieve profit margin 14.75

If a particular job takes 20 hours of labor and $950 of materials, the price charged for the job is: (Round intermediate calculations to 2 decimal places.)

Multiple Choice $1,860. $1,680. $2,003. $1,856. None of the answers is correct.

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