Jaycee Auto Repair Has the Following Budgeted Costs for the Next

Multiple Choice

Jaycee Auto Repair has the following budgeted costs for the next year: $\begin{array}{lcc}&\text { Time Charges }&\text { Material Charges }\\\text { Shop employees' wages and benefits } & \$ 120,000 & \$- \\\text { Parts manager's salary and benefits } & - & 45,000 \\\text { Office employee's salary and benefits } & 30,000 & 15,000\\\text { Other overhead } & 15,000 & 40,000 \\\text { Invoice cost of parts and materials } & - & 400,000\\\text { Total budgeted costs }&\$165,000&\$500,000\end{array}$
-The material loading charge to be used next year assuming a 40% markup on material cost is

A) 20%.
B) 40%.
C) 65%.
D) 80%.