The last step in calculating the hourly rate to be charged in time-and-material pricing is to
A) estimate the total labor costs plus fringe benefits.
B) estimate the total labor hours.
C) add a profit margin.
D) add a charge for overhead costs.

Question

Quizplus · Accepted Answer

After estimating the total labor costs plus fringe benefits and total labor hours, the final step in calculating the hourly rate in time-and-material pricing is to add a profit margin. Adding a charge for overhead costs may be necessary, but it is not the last step in the calculation.

The Last Step in Calculating the Hourly Rate to Be