Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 14.3 percent. The job for a medium-sized dance club client included the following costs:

Direct materials $20,000
Direct labor (partners and staff accountants) 150,000
Depreciation (using straight-line method) on
Integrity’s office building 50,000

Required:
Calculate the price charged by The J. Escobar Law Firm to the dance club.

Respuesta :

Answer:

$194,310

Explanation:

The price charged by The J. Escobar Law Firm to the dance club is as follows:

Direct Materials                           $20,000

Direct Labour                              $150,000

Total Variable Cost of Jobs       $170,000

14.3% Mark up on TVC               $24,310

The price charged ro the club $194,310