Target costing

House it Co produces rabbit hutches. It is about to launch a new top of the range hutch which it believes can be hold for S125, House it Co demands a margin of 25% on sales
Cost information for the new hutch is as follows:
Timber – The hutch needs 10 metres (m) of good quality planed timber.
House it Co can acquire this at a cost of $48.
Felt roofing material – 2m are required. Roofing material costs $17.50/m
Wire – 1 m of wire is needed at a cost of $1.50 per metr
Labour – Labour is paid at a rate of $7 / hour,
Variable overhead – These will be incurred at a rate of $1.50 per labour hour

S
Required
What is the expected cost to make the hutch?
O $93.00
O $98.50
O $101.50
O $125.00

According to them correct answer is $ 101.50

There is no information for the labor hours being 2 hours so how come they derived the answer to be $ 101.50

Thank u in advance