Jaycee Auto Repair has the following budgeted costs for the next year:

Time Charges Material Charges
Shop employees' wages and benefits $120,000 $-
Parts manager's salary and benefits - 45,000
Office employee's salary and benefits 30,000 15,000
Other overhead 15,000 40,000
Invoice cost of parts and materials - 400,000
Total budgeted costs $165,000 $500,000


The material loading charge to be used next year assuming a 40% markup on material cost is

a) 40%.

b) 80%.

c) 65%.

d) 20%.

c) 65%