Dresser Company uses time and material pricing.The time rate is $30 per hour.The material loading charge is 15% for ordering,handling,and storing materials and 25% for the desired profit on these materials.Given these data,what would be the total charge for a job that requires 3 hours of labour time and $80 in materials?
A) $182.
B) $190.
C) $202.
D) $214.

Question

Quizplus · Accepted Answer

Time charge for 3 hours of labour = 3 x $30 = $90
Material loading charge = 15% of $80 + 25% of $80 = $12 + $20 = $32
Total charge = Time charge + Material loading charge = $90 + $32 = $122
Total charge with materials cost included = Total charge + Materials cost = $122 + $80 = $202. The answer is option C.

Dresser Company Uses Time and Material Pricing