\fProblem 15-45 Time and Material Pricing (LO 15-9) Southern Tier Heating, Inc, installs heating systems in new homes built in the southern tier counties of New York state. Jobs are priced using the time and materials method. The president of Southern Tier Heating, B. T. Ewing, is pricing ajob involving the heating systems for six houses to be built by a local developer. He has made the following estimates. Material cost $87,698 Labor hours 558 The following predictions pertain to the company's operations for the next year. Labor rate, including fringe benefits $ 21.90per hour Annual labor hours 17,666hours Annual overhead costs: Material handling and storage $ 33,950 Other overhead costs $153,068 Annual cost of materials used $339,568 Required: Southern Tier Heating adds a markup of $6.00 per hour on its time charges, but there is no markup on material costs. 1. Calculate the company's time charges and the material charges percentage. (Round "Time charges" answer to 2 decimal places.) 2. Compute the price for thejob. (Do not round intermediate calculations.) 3. What would be the price of thejob if Southern Tier Heating also added a markup of 20 percent on all material charges (including material handling and storage costs)? (Do not round intermediate calculations.)