Yelk GRAGE USES TIME AND

Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 60 per hour Annual labor hours 3,000 hours Annual materials purchases $831,000 Materials purchasing, handling, and storage $ 52,000 Overhead for depreciation, taxes, insurance, etc. $ 75,000 Target profit margin for both labor and materials 20 % What should Yelk set as the direct labor rate per hour? Multiple Choice 0 $85 per hour $120 per hour $60 per hour, $102 per hour $77 per hour, @000 Pinkin Inc. needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost ofthe phone. Pinkin expects to sell 41,000 phones. Additional information is as follows: Variable product cost per unit 5 77 Variable administrative cost per unit 62 Total fixed overhead 93,000 Total fixed administrative 71,000 Using the total cost method what price should Pinkin charge? Multiple Choice 0 $169.09 $143.09 $17875 $17750 $159.31 0000 Janko Wellspring Inc. has a pump with a book value of $36,000 and a 4year remaining life. A new, more efcient pump, is available at a cost of $57,000. Janko can also receive $9,200 for trading in the old pump. The new pump will reduce variable costs by $13,200 per year over its four-year life. The costs not relevant to the decision of whether or not to replace the pump are: Multiple Choice 0 $13,400. $36,000. $52,800, $9,200. 0000 $13,200