Voltage Electrical, Which Installs Sophisticated Electronic-Control Systems in New Homes

question 5

Essay

Voltage Electrical, which installs sophisticated electronic-control systems in new homes, prices jobs by using the time-and-materials method. The following data apply to a job for LMB Builders:
Labor hours: 180
Materials cost: $48,000
The following predictions, based on 30,000 direct labor hours, pertain to the company's operations for the year: $\begin{array}{l}\text { Annual overhead costs: }\\\begin{array}{lr}\text { Material handling and storage } & \$ 40,000 \\\text { Other overhead costs } & 360,000 \\\text { Annual cost of materials used } & 500,000 \\\text { Labor rate per hour, including fringe benefits } & 34\end{array}\end{array}$
Voltage Electrical adds a markup of $15 per hour on its time charges, but there is no profit markup on material costs.
Required:
Calculate the price for the LMB Builders' job.

---

Definitions:

Oregon Treaty

An agreement made in 1846 between the United States and Great Britain that set the boundary between Canadian and American territories in the Pacific Northwest.

Great Britain

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, and Wales.

President Polk

James K. Polk, the 11th President of the United States, serving from 1845 to 1849, known for his territorial expansion policies.

Unconstitutional

Actions or laws that are not in accordance with the constitution of a country, deemed illegal and invalid.