(LO 3) Crescent Electrical Repair has decided to price its work on a time-and-material basis. It estimates the following costs for the year related to labor.
| Technician wages and benefits | $100,000 |
| Office employee’s salary and benefits | $40,000 |
| Other overhead | $80,000 |
Crescent desires a profit margin of $10 per labor hour and budgets 5,000 hours of repair time for the year. The office employee’s salary, benefits, and other overhead costs should be divided evenly between time charges and material loading charges. Crescent labor charge per hour would be:
a. $42. c. $32.
b. $34. d. $30.
