Jensen Marine Supplies Inc If a Particular Job Takes 20 Hours of Labour and Mechanics

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: $\begin{array}{l}\text { Annual overhead costs: }\\\begin{array} { l r } \text { Material handling and storage } & \$ 20,000 \\\text { Other overhead costs } & 60,000 \\\text { Annual cost of materials used } & 200,000 \\\text { Labour rate per hour, including fringe benefits } & 20 \\\text { Hourly charge to achieve profit margin } & 15\end{array}\end{array}$ If a particular job takes 20 hours of labour and $800 of materials, the price charged for the job is:

A) $880.
B) $900.
C) $1,772.
D) $1,640.
E) $1,900.