Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information:

Labor rate, including fringe benefits	$	105	per hour
Annual labor hours		6,450	hours
Annual materials purchases	$	1,258,750
Materials purchasing, handling, and storage	$	251,750
Overhead for depreciation, taxes, insurance, etc.	$	741,750
Target profit margin for both labor and materials		25	%

What is the total price for a project requiring 260 direct labor hours and $250,000 of materials?

Multiple Choice

• $316,800.

• $360,000.

• $436,500.

• $426,500.

• $434,000.