Ignatenko's Custom Electronics (ICE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. *Time Charges* *Material Loading Charges* Technicians' wages and benefits $150,000 - Parts manager's salary and benefits - $34,000 Office employee's salary and benefits 28,000 15,000 Other overhead 15,000 42,000 Total budgeted costs $193,000 $91,000 The company has budgeted for 6,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and a 100% profit on parts. It estimates the total invoice cost of parts and materials in 2014 will be $700,000. (a) Compute the rate charged per hour of labor.

(b) Compute the material loading percentage.

(c ) ICE has just received a request for a bid from Buil Builders on a $1,200,000 new home. The company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimate bill.