Shale Remodeling uses time and materials pricing. It reports the following information:

Direct labor rate	$ 60	per DLH
Non-materials-related overhead	$ 30	per DLH
Materials-related overhead	10%	of direct materials cost
Target profit margin (both conversion and direct materials)	20%

What price should the company quote for a job requiring four direct labor hours and $580 in materials?

Multiple Choice

• $606.

• $1,012.

• $784.

• $838.

• $1,186.