Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Frey estimates that the job will require the following direct labor.
Labor Estimated Hours Hourly Rate
Architects 176 $ 300= 52,800
Staff 352 75= 26,400
Clerical 825 20= 16,500
Total direct labor= 95,700
Frey applies overhead to jobs at 175% of direct labor cost. Frey would like to earn at least $40,000 profit on the architectural job.
1) Total cost= 95,700 + (95700*1.75)= $263,175
2) Bidding price= 263,175 + 40,000= $303,175
If they bid with $298,000 it won't reach $40,000 profit.
3) Bidding price= 263,175 + 40,000= $303,175
