Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020.

SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020
		Time Charges			Material Loading Charges
Shop employees’ wages and benefits		$99,820				―
Parts manager’s salary and benefits		―				$25,400
Office employee’s salary and benefits		17,480				15,550
Overhead (supplies, depreciation, advertising, utilities)		25,300				21,000
Total budgeted costs		$142,600				$61,950

Sutton’s budgets 4,600 hours of repair time in 2020 and will bill a profit of $9 per labor hour along with a 20% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $105,000.

On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts.

(a)

Compute the labor rate for Sutton’s Electronic Repair Shop for the year 2020. 

Labour rate

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per hour