Apple offers device service and repair through its AppleCare program. Assumed data follow.

Required

1. Compute time charge per hour of direct labor (in $).
2. Compute materials markup per dollar of direct material cost (in %).
3. Use time and materials pricing to compute the price for a local college. Apple estimates the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost.

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Direct labor rate.. Non-materials-related overhead . $40 per direct labor hour $10 per direct labor hour Materials-related overhead... 4% of direct materials cost Target profit margin (on both conversion and direct materials) 40% .....