CALCULATING PRICE BY APPLYING A MARKUP PERCENTAGE TO COST Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 15 percent. The job for a medium-sized dance club client included the following costs:

Direct materials $ 5,000 Direct labor (partners and staff accountants) 90,000 Depreciation (using straight-line method) on Integrity’s office building 50,000 Required:

Calculate the price charged by Integrity Accounting to the dance club.

Cornerstone Exercise