Paul's Auto Repair Uses Time and Material Pricing The Time Charge Per Hour Is:
A) $19

Paul's Auto Repair uses time and material pricing. The body shop, which anticipates 10,000 direct labor hours of activity, has the following data: $\begin{array}{lr}\text { Annual overhead costs: }\\\text { Material handling and storage } & \$ 15,000 \\\text { Other overhead costs } & 75,000\\\text { Annual cost of materials used } & 187,500 \\\text { Labor rate per hour, including fringe benefits } & 18 \\\text { Hourly charge to achieve profit margin } & 11\end{array}$ The time charge per hour is:

A) $19.50.
B) $27.00.
C) $29.00.
D) $36.50.
E) none of the other answers are correct.