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

Labor rate, including fringe benefits	$	90	per hour
Annual labor hours		6,400	hours
Annual materials purchases	$	1,232,500
Materials purchasing, handling, and storage	$	246,500
Overhead for depreciation, taxes, insurance, etc.	$	704,000
Target profit margin for both labor and materials		25	%

What is the total price for a project requiring 210 direct labor hours and $200,000 of materials?

Multiple Choice

• $250,000.

• $284,000.

• $345,000.

• $335,000.

• $342,500.