Dresser Company Uses Time and Material Pricing

question 80

Multiple Choice

Dresser Company uses time and material pricing.The time rate is $30 per hour.The material loading charge is 15% for ordering,handling,and storing materials and 25% for the desired profit on these materials.Given these data,what would be the total charge for a job that requires 3 hours of labour time and $80 in materials?

• A) $182.
• B) $190.
• C) $202.
• D) $214.

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Definitions:

Customers Served

The total number of customers who have been provided with a product or service.

Spending Variance

The variance between the anticipated budget for expenses and the actual expenditure incurred.

Net Operating Income

The profit generated from a company's everyday business operations, excluding expenses and revenues from non-operational activities.

Flexible Budget

A budget designed to adapt by varying in response to the company's activity levels or volume changes.