Gateway Inc. provides decice support services to large business clients. These services use direct labor and overhead
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Question:
Gateway Inc. provides decice support services to large business clients. These services use direct labor and overhead costs. Assume gateway 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 2,000 technical specialist hours.
What is the job's total estimated costs? If gateway applies a markup of 40% on the total estimated cost of these services, what price will it quote?
Please answer in detail and provide necessary information onto solve the problem.
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