Tropico Services is a landscaping firm located in Nadi. The following costs were incurred in the firms contract to beautify the local hotels: Direct material $4 800 Professional labour $13 000 The firms budget for the year included the following estimates: Budgeted overhead $900 000 Budgeted professional labour $600 000

D) Calculate the fee charged to beautify the hotels, assuming that the firm uses a charge out rate of $360 per professional labour hour (which includes a profit margin of 42 per cent) and 110 hours are worked on this contract. Materials are charged to the client at cost.