Lee Ltd. uses time and material pricing. The companys maintenance department has budgeted 8,000 direct labour hours
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Question:
Lee Ltd. uses time and material pricing. The company’s maintenance department has budgeted 8,000 direct labour hours of activity for the period and estimates the following costs:
Labour and benefit costs $200,000
Overhead costs (excluding material handling and storage) $175,000
The company also has a target profit of $180,000.
The company's time charge per hour is:
a. $25.00
b. $47.50
c. $69.38
d. $46.88
Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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