The materials markup for a job that will use 100 labor hours and $2,000 of materials is $460.
The materials markup is the additional rate applied to the cost of materials before being charged to customers.
The materials markup in dollars can be described as the dollar difference between the price paid for materials and the amount charged customers for the materials.
Job:
The cost of materials = $2,000
Materials markup = 23% = $460 ($2,000 x 23%)
Total cost of materials for the job = $2,460 ($2,1000 x 1.23)
Thus, for this job that uses $2,000 of materials, the materials markup will be $460.
Complete Question:
Marshall Grocery Delivery Service reports the following information:
Rate per hour of direct labor is:
Labor rate per hour $20
Rate per hour of direct labor $25.80
Materials markup 23%
Target profit margin 20%
The materials markup for a job that will use 100 labor hours and $2,000 of materials is: