Problem 15-45 Time and Material Pricing (LO 15-9) 14 1.04 points 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 a job involving the heating systems for six houses to be built by a local developer. He has made the following estimates. Material cost Labor hours $74,000 550 03:24:14 eBook References The following predictions pertain to the company's operations for the next year. Labor rate, including fringe benefits Annual labor hours Annual overhead costs: Material handling and storage Other overhead costs Annual cost of materials used $ 25.00 per hour 14,000 hours $ 64,000 $140,000 $320,000 Required: Southern Tier Heating adds a markup of $8.00 per hour on its time charges, but there is no markup on material costs.