1. Eye for Detail is an interior decorating rm located 1n Sydney. The I'ollowrng costs were incurred in the rm's contract to redecorate the local council ofces: Direct material 35 5 600 Professional labour 12 000 The rm's budget for the year included the following estimates: Budgeted overhead $800 000 Budgeted professional labour 500 000 Required: a) Calculate the total cost of the finn's contract to redecorate the council oices. Overhead is applied to contracts using a predetermined overhead rate, calculated annually, based on the professional labour cost. Materials are charged directly tot each contract. b) Use the total cost to calculate a service fee, assuming that the company adds a 40 percent prot margin to total cost