Clemente Corporation has requested bids from several architects to design its new corporate headquarters. Troy Architects is one of the firms bidding on the job. Troy estimates that the job will require the following direct labor.

Troy applies overhead to jobs at 160% of direct labor cost. Troy would like to earn at least $90,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $450,000 and $550,000 for the job.
1. What is Troy€™s estimated cost of the architectural job?
2. What bid would you suggest that Troysubmit?

Labor Estimated Hours Hourly Rate 2 Architects 3 Staff 4 Clerical 300 300 600 $400 65 20