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Shocker Electrical, which installs sophisticated electronic-control systems in new homes, prices jobs by using the time-and-materials method. The following data apply to a job for
Shocker Electrical, which installs sophisticated electronic-control systems in new homes, prices jobs by using the time-and-materials method. The following data apply to a job for ABC Builders: Labor hours: 200 Materials cost: $53,000 The following predictions, based on 35,000 direct labor hours, pertain to the company's operations for the year:
Annual overhead costs: Material handling and storage Other overhead costs Annual cost of materials used Labor rate per hour, including fringe benefits $ 45,000 770,000 1,000,000 44 Shocker Electrical adds a markup of $25 per hour on its time charges, but there is no profit markup on material costs. Required: Calculate the price for the ABC Builders' job. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price quotation for ABC BuildersStep by Step Solution
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