Jensen Marine Supplies Inc The Time Charge Per Hour Is:
A)$4

Multiple Choice

Jensen Marine Supplies Inc. uses time and material pricing. The Mechanics Department, which anticipates 20,000 direct labour hours of activity, has the following data: $\begin{array}{l}\text { Annual overhead costs: }\\\begin{array} { l r } \text { Material handling and storage } & \$ 20,000 \\\text { Other overhead costs } & 60,000 \\\text { Annual cost of materials used } & 200,000 \\\text { Labour rate per hour, including fringe benefits } & 20 \\\text { Hourly charge to achieve profit margin } & 15\end{array}\end{array}$ The time charge per hour is:

A) $4.
B) $15.
C) $20.
D) $35.
E) $38.