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		6,360	hours
Annual materials purchases	$	1,211,500
Materials purchasing, handling, and storage	$	242,300
Overhead for depreciation, taxes, insurance, etc.	$	674,160
Target profit margin for both labor and materials		25	%

What is the total price for a project requiring 170 direct labor hours and $160,000 of materials?

Multiple Choice

• $197,900.

• $225,000.

• $273,600.

• $263,600.

• $271,100.