Shale Remodeling uses time and materials pricing.It is setting prices for next year using the following information: What should Shale set as rate per hour of labor hour?
A)$250.
B)$200.
C)$150.
D)$225.
E)$180.

Question

Shale Remodeling uses time and materials pricing.It is setting prices for next year using the following information:  What should Shale set as rate per hour of labor hour?
A)$250. 
B)$200. 
C)$150. 
D)$225. 
E)$180.

Quizplus · Accepted Answer

Based on the information provided, the cost per direct labor hour is $150 and the overhead cost per labor hour is 50% of the direct labor cost ($75). Adding these two costs together gives us a total cost per labor hour of $225. Therefore, Shale Remodeling should set their rate per hour of labor at $225.

Shale Remodeling Uses Time and Materials Pricing