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

Labor rate, including fringe benefits $ $95$ per hour

Annual labor hours $2,850$ hours

Annual materials purchase $ $1,406,250$

Materials purchasing, handling, and storage $ $309,375$

Overhead for depreciation, taxes, insurance, etc. $ $870,000$

Target profit margin for both labor and materials $24\%$