Dudly Drafting Services Uses a 45% Material Loading Charge and a Labor

question 26

Multiple Choice

Dudly Drafting Services uses a 45% material loading charge and a labor rate of $20 per hour. How much will be charged on a job that requires 3.5 hours of work and $40 of materials?

• A) $128
• B) $110
• C) $88
• D) $133

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Tax

A required financial contribution or alternative type of tax enforced on a taxpayer by a governing body to support government expenditure and assorted public outlays.

Tax Revenue

Money earned by governments through taxation, intended for the financing of public amenities and meeting governmental commitments.

Government

The governing body of a nation, state, or community, responsible for regulation, public policy, and administration of state affairs.