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

question 15

Essay

Quality Exteriors installs stucco on high-priced custom homes, using the time-and-materials method to price jobs for individual builders. Quality 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 labour hours, will total $360,000. Quality pays construction crews $17 per labour 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, Quality performed 24 jobs for Don Henderson Builders, using 3,100 labour hours and $72,000 of materials.
Required:
Calculate the amount that Quality would bill Don Henderson Builders for work performed.

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Organizations that apply commercial strategies to maximize improvements in human and environmental well-being, rather than maximizing profits for shareholders.

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