With the Time and Material Pricing Method, the Hourly Time

question 33

Multiple Choice

With the time and material pricing method, the hourly time charge is typically set equal to:

• A) the hourly labor cost.
• B) the hourly labor cost + annual overhead.
• C) the hourly labor cost + an hourly overhead charge + an hourly charge to cover the profit margin.
• D) annual overhead + an hourly charge to cover the profit margin.
• E) the hourly labor cost + an hourly charge to cover the profit margin.