Toby owns a small property repair business and has one employee. He has been asked to prepare

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Toby owns a small property repair business and has one employee. He has been asked to prepare a quotation to paint a customer's house. Toby adds 25 per cent to the total costs of each job undertaken to provide his own profit. Toby estimates the total cost of materials will be $450. The job will take 42 hours in total, with the work divided equally between his employee and himself. Toby pays his employee $6 per hour and the overhead recovery rate is $2.50 per labour hour taken on the job. 


Required

a. Calculate the total costs to complete the job. 

b. Calculate the final price that Toby should quote the customer to complete the job.

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Accounting For Cambridge International AS And A Level

ISBN: 9780198399711

1st Edition

Authors: Jacqueline Halls Bryan, Peter Hailstone

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