Exquisite Exteriors Installs Stucco on High-Priced Custom Homes, Using the Time-And-Materials

question 56

Essay

Exquisite Exteriors installs stucco on high-priced custom homes, using the time-and-materials method to price jobs for individual builders. Exquisite anticipates using $250,000 of materials during the year and will incur $15,000 for material handling and storage. Other overhead costs, which are driven by the company's 18,000 direct labor hours, will total $360,000. Exquisite pays construction crews $17 per labor hour and adds a markup of $19 per hour on its time charges. There is no profit markup on material cost.
During the first quarter of the year, Exquisite performed 24 jobs for Don Henderson Builders, using 3,100 labor hours and $72,000 of materials.
Required:

Calculate the amount that Exquisite would bill Don Henderson Builders for work performed.

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Definitions:

Unattended Message

Information that is not directly focused on or noticed by an individual, especially in studies of selective attention.

Resource-Limited Processing

A concept in cognitive psychology that suggests there is a finite amount of cognitive resources available for processing information, which limits the number of tasks we can perform simultaneously.

Vigilance Requirement

The need for sustained attention and alertness over prolonged periods to detect and respond to small or infrequent changes or signals.

Treisman's Theory

A theory proposed by Anne Treisman that emphasizes the importance of attention in perception, particularly in integrating features into cohesive objects.