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Contemporary Trends is an interior decorating firm in Munich. The following costs were incurred in the firms contract to redecorate the mayors offices. Direct material
| Contemporary Trends is an interior decorating firm in Munich. The following costs were incurred in the firms contract to redecorate the mayors offices. |
| Direct material used | 3,000 | euros |
| Direct professional labor | 6,000 | euros |
| The firms budget for the year included the following estimates: |
| Budgeted overhead | 300,000 | euros |
| Budgeted direct professional labor | 250,000 | euros |
| Overhead is applied to contracts using a predetermined overhead rate calculated annually. The rate is based on direct professional labor cost. |
| Required: |
| Calculate the total cost of the firms contract to redecorate the mayors offices. (On the day this exercise was written the euro was valued at 1.2905 U.S. dollars.) What is the total contract cost in euros? |
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