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

Rate per hour = Labor rate per hour + Overhead per hour + Profit margin per hour
$75 + $105 + $45 = $225
Overhead per labor hour ($666,750 / 6,350) = $105
Profit margin ($75 + $105) × 25% = $45

Shale Remodeling Uses Time and Materials Pricing