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

Labor rate, including fringe benefits

Annual labor hours

Annual materials purchases

Materials purchasing, handling, and storage

Overhead for depreciation, taxes, insurance, etc.

Target profit margin for both labor and materials

$58$ per hour

$3,000$ hours

$$826,000$

$$47,000$

$$66,000$

$25\%$

What should Yelk set as the direct labor rate per hour?

Multiple Choice

$$80$ per hour.

$$58$ per hour.

$$78$ per hour.

$$116$ per hour.

$$100$ per hour.