Apple provides device support services to large business clients. These services use direct labor and overhead costs. Assume Apple uses two types of direct labor: phone support staff, paid $12 per hour, and technical specialists, paid $25 per hour. Overhead is applied using a rate of $18 per direct labor hour (for both types of labor). A potential client requests a price quote for services that Apple estimates will use 1,800 phone support hours and 2,200 technical specialist hours.

Required

1. What is this job’s total estimated cost?
2. If Apple applies a markup of 40% on total estimated cost of these services, what price will it quote?