Riteway plumbing company provides plumbing repair services and uses time and material pricing. The company has budgeted the following costs for the next year.

Olumbers wages and fringe benefits......................... $340,000

Other repair cost except for parts-related costs..............$160,000

Cost of ordering, handling and sorting parts............. 15% OF INVOICE COST

In total the company expects to log 20,000 hours of billable repair time next year. According to competitive conditions, the company believes it should aim for a profit of $5 per hour of plumber's

Required

1. compute the time rate and the material loading charge that would be used to bill jobs.

2. one of the company's plumber has just completed a repair job that required three hours of time and $40 in parts (invoice cost). compute the amount that would be billed for the job