Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information:

Labor rate, including fringe benefits	$	78	per hour
Annual labor hours		6,600	hours
Annual materials purchase	$	1,236,250
Materials purchasing, handling, and storage	$	296,700
Overhead for depreciation, taxes, insurance, etc.	$	739,200
Target profit margin for both labor and materials		20	%

What should Shale set as rate per hour of labor hour?

Multiple Choice

• $150.

• $248.

• $208.

• $228.

• $190.