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ollegr [7]
2 years ago
5

Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the t

otal 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.
Business
1 answer:
torisob [31]2 years ago
8 0

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                              <u>$150,000</u>

Total Variable Cost of Jobs       $170,000

14.3% Mark up on TVC               <u>$24,310</u>

The price charged ro the club <u>$194,310</u>

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