Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. 

Step by Step Solution

3.42 Rating (146 Votes )

There are 3 Steps involved in it

Step: 1

Phone support staff costs Technical specia... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John J Wild, Ken Shaw

25th Edition

1260247988, 978-1260247985

Students also viewed these Accounting questions

Question

What was the positive value of Max Weber's model of "bureaucracy?"

Answered: 1 week ago