Exercise $15-29($Static$)$ Pricing services using job order costing LO A$1$

Hansel Company has requested bids from several architects to design its new corporate headquarters. Frey Architects is bidding on the job. Frey estimates that the job will require the following direct labor.

Direct LaborEstimated HoursHourly RateArchitects$150$$ $300$Staff$30075$Clerical$50020$

Frey applies overhead to jobs at $175\%$ of direct labor cost. Frey wants to earn at least $$80,000$ profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $$285,000$ and $$350,000$ for the job.

What is Frey$$s estimated cost of the architectural job?

If Frey bids a price of $$285,000,$ what is its expected profit? Will it earn its target profit of $$80,000?$

What bid price would earn the desired $$80,000$ target profit?