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Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a web-page design. The pricing policy of
Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a web-page design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below Sales $550 000 Direct materials 50 Direct labour Variable overhead 300 000 5 000 Advertising for business Depreciation on equipment Administration 5 000 30 000 27 000 Interest 10000 Profit before tax 133 000 Other relevant information: Management has budgeted for 20000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below Direct materials S400 Direct labour (100 hours) $1 500 Refer to the table above. The recommended quote for the job is: A) S2 285 B) S2 460 C) $2 195 D) $2 485
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