Design Arts Associates is an interior decorating firm in San Mateo. The following data are available in
Question:
Design Arts Associates is an interior decorating firm in San Mateo. The following data are available in the firm's contract to redecorate the mayor's office for 2020: Purchases of raw materials of 60,000; Raw materials beginning is 10,000; Raw materials inventory decreased to 2,000. Labor hours are as follows: Total worked hours (direct labor hours) is 900 hours. The regular working hours for the period is 820 hours with regular rate of 30 per hour. Overtime rate premium is 20%. Overtime hours are the result of client's specifications. The SSS, Pag ibig and Withholding tax totaled 5,000. The company uses normal costing and the firm's budget for the year included the following estimates: 4,000,000 budgeted OH and Budgeted direct labor cost of 2,500,000. Other actual cost incurred by the company are as follows: indirect materials of 6,000; rent and utility of the service department of 20,000 and indirect labor cost of 1,000. Calculate the total cost of the firm in redecoration of mayor's office at normal cost?