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Harris is the owner of a business that sells and installs home theatre systems. He just completed a job for a builder consisting of the installation of 10 home theatre systems in a new condominium complex. The installations required materials totalling $ 18 comma 700 and 74 hours of direct labour hours at a wage rate of $38 per hour. Overhead is allocated to jobs using a predetermined overhead rate of $4 per direct labour hour.
Question 1: What is the total cost of the job?
Question 2: What is the average unit cost (per theatre system installed)?
Question 3: If Peter charges a price to the builder that is 160% of the total iob cost. what price will he charge for the job?
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