Acron Construction charges each customer a price equal to the cost of direct materials and direct labour plus 40%.Job 126 included the following costs: $\begin{array} { l }
\text {Direct materials }&\$60,000\ \text {Direct labour }&\$45,000\
\end{array}$
What price does Acron charge for Job 126?

Question

Acron Construction charges each customer a price equal to the cost of direct materials and direct labour plus 40%.Job 126 included the following costs: $\begin{array} { l  }
 \text {Direct materials }&\$60,000\ \text {Direct labour }&\$45,000\
\end{array}$
 What price does Acron charge for Job 126?

Quizplus · Accepted Answer

The total cost for Job 126 is the sum of direct materials ($60,000) and direct labour ($45,000), which equals $105,000. Acron charges an additional 40% on top of this cost, so the price is $105,000 + (0.40 * $105,000) = $148,400.

Acron Construction Charges Each Customer a Price Equal to the Cost