Enviro Consulting Firm provides various environmental consulting services to organizations. Enviro has decided to price its jobs

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Enviro Consulting Firm provides various environmental consulting services to organizations. Enviro has decided to price its jobs at the total direct variable costs of the job plus 10%. The job for a new client included the following costs:

Direct materials............................................$500,000

Direct labor (partners and staff accountants)...........250,000

Depreciation (using straight-line method) on

Enviro's office building...................................300,000

Required:

Calculate the price charged by Enviro Consulting Firm to its new client.

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Managerial Accounting The Cornerstone of Business Decision Making

ISBN: 978-1337115773

7th edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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