Vaughn Manufacturing has the following budgeted costs for the next year:

	Time Charges		Material Charges
Shop employees wages and benefits	$125000		$-
Parts managers salary and benefits	-		45000
Office employees salary and benefits	25000		15000
Other overhead	20000		40000
Invoice cost of parts and materials	-		400000
Total budgeted costs	$170000		$500000

The material loading charge to be used next year assuming a 40% markup on material cost is

20%.

40%.

80%.

66%.