Question
Gateway Inc. provides decice support services to large business clients. These services use direct labor and overhead costs. Assume gateway uses two types of direct
Gateway Inc. provides decice support services to large business clients. These services use direct labor and overhead costs. Assume gateway uses two types of direct labor: phone support staff, paid 12 per hour, and technical specialists, paid 25 per hour. Overhead is applied using a rate of 18 per direct labor hour (for both types of labor). A potential client requests a price quote for services that apple estimates will use 1,800 phone support hours and 2,000 technical specialist hours.
What is the job's total estimated costs? If gateway applies a markup of 40% on the total estimated cost of these services, what price will it quote?
Please answer in detail and provide necessary information onto solve the problem.
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