With the time and material pricing method, the hourly time charge is typically set equal to:
A) the hourly labor cost.
B) the hourly labor cost + annual overhead.
C) the hourly labor cost + an hourly overhead charge + an hourly charge to cover the profit margin.
D) annual overhead + an hourly charge to cover the profit margin.
E) the hourly labor cost + an hourly charge to cover the profit margin.

Question

Quizplus · Accepted Answer

The time and material pricing method typically includes the hourly labor cost plus an hourly overhead charge and an hourly charge to cover the profit margin. This ensures that all costs are covered and a profit is made on the work performed.

With the Time and Material Pricing Method, the Hourly Time