Q4

Dorothy is a contractor, and she owns a small home renovation company that specializes in kitchen renovations. Dorothy fears she has been underbidding her projects, and that translates into lost profits that could help sustain her through slow periods. She is putting together an estimate for a potential client and has determined the following activities: Activity Cost Driver Rate Estimated Use for Job Demo of Existing Space Square Footage $3.25 /square foot 510 square feet Cabinet Installation # of Hours $204 /hour 7 hours Countertop Installation Square Footage $12.40 /square foot 270 square feet Previously, Dorothy was billing at a flat rate of $15 per square foot of the demo space with no additional markup. Dorothy would like to add a 20% markup to the cost to arrive at the final bid price. Using Activity-Based Costing (ABC), what is the final bid price for her potential customer? (Round intermediate calculations and final answer to 2 decimal places, e.g. 25,000.25.) Final bid price $