Peter Thompson is the owner of a business that sells and installs home theater systems. He just completed a job for a builder consisting of the installation of 18 home theater systems in a new condominium complex. The installations required materials totaling $17,897 and 79 hours of direct labor hours at a wage rate of $36 per hour. Overhead is allocated to jobs using a predetermined overhead rate of $7 per direct labor hour.
1. What is the total cost of the job?
2. What is the average unit cost (per theater system installed)?
3. If Peter charges a price to the builder that is 200% of the total job cost, what price will he charge for the job?