Calculating Price by Applying a Markup Percentage to Cost

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 office building	300,000

Required:

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