E6.25 Job costing and pricing: interior decorating firm LO 6.7 Illusions is an interior decorating firm located in Adelaide. The following costs were incurred in the firm's contract to redecorate the local council offices: Direct material Professional labour $11200 24.000 The firm's budget for the year included the following estimates: Budgeted overhead Budgeted professional labour $1600000 1000000 Required 1. Calculate the total cost of the firm's contract to redecorate the council offices. Overhead is applied to contracts using a predetermined overhead rate, calculated annually, based on the professional labour cost. Materials are charged directly to each contract. 2. Use the total cost to calculate a service fee, assuming that the company adds a 40 per cent profit margin to total cost.