Troy James is the owner of a business that sells and installs home theatre systems. He just completed a job for a builder consisting of the installation of 12 home theatre systems in a new condominium complex. The installations required materials totalling $17,400 and 72 hours of direct labour hours at a wage rate of $20 per hour. Overhead is allocated to jobs using a predetermined overhead rate of $5 per direct labour hour.
1. What is the total cost of the job?
2. What is the average unit cost (per theatre system installed)?
3. If Troy charges a price to the builder that is 150% of the total job cost, what price will he charge for the job?

  • CreatedApril 30, 2015
  • Files Included
Post your question