Alarm Source Inc Alarm Source Inc

question 61

Essay

Alarm Source Inc., which installs security alarm systems in new homes, prices jobs by using the time-and-materials method. The following data apply to a job for Treadwell Homes Builders: labour hours 206; material's cost $56,000.
The following predictions, based on 20,000 direct labour hours, pertain to the company's operations for the year: $\begin{array}{l}\text { Annual overhead costs: }\\\begin{array} { l r } \text { Material handling and storage } & \$ 50,000 \\\text { Other overhead costs } & 420,000 \\\text { Annual cost of materials used } & 500,000 \\\text { Labour rate per hour, including fringe benefits } & 38\end{array}\end{array}$ Alarm Source Inc. adds a markup of $12 per hour on its time charges, but there is no profit markup on material costs.
Required:
Calculate the price for the Treadwell Homes Builders job.

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Definitions:

Postconventional Stage

A level of moral development where individuals recognize universal ethical principles and prioritize them over laws and social agreements.

Care Perspective

The emphasis in moral development on context and relationships.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and personal beliefs.

Death Penalty

A legal punishment where an individual is executed by the state as retribution for a crime deemed sufficiently severe.