Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information:  Labor rate, including fringe benefits$50per hourAnnual labor hours 3,350hoursAnnual materials purchases$825,000 Materials purchasing, handling, and storage$46,000 Overhead for depreciation, taxes, insurance, etc.$67,000 Target profit margin for both labor and materials 20% What should Yelk set as the direct labor rate per hour?

A. $70 per hour.
B. $64 per hour.
C. $50 per hour.
D. $100 per hour.
E. $84 per hour.


Answer: E

Business

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