Ralph's Auto Repair uses time and material pricing. The body shop, which anticipates 10,000 direct labor hours of activity, has the following data: Annual overhead costs: Material handling and storage$15,000 Other overhead costs 75,000 Annual cost of materials used 187,500 Labor rate per hour, including fringe benefits 18 Hourly charge to achieve profit margin 11 The time charge per hour is:
A. $36.50.
B. $27.00.
C. $29.00.
D. $19.50.
E. None of the answers is correct.
Answer: A
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