Mattson Construction charges each customer a price equal to the cost of direct materials, direct labor, and overhead plus 40%.Job #1845 included the following costs: What is price charged for Job 1845?

A) $86,000
B) $42,400
C) $106,000
D) $184,800
E) $166,154

Question

Mattson Construction charges each customer a price equal to the cost of direct materials, direct labor, and overhead plus 40%.Job #1845 included the following costs: What is price charged for Job 1845?

A) $86,000 
B) $42,400 
C) $106,000 
D) $184,800 
E) $166,154

Quizplus · Accepted Answer

Price = ($39,000 + $67,000 + $26,000) × 1.40 = $184,800

Mattson Construction Charges Each Customer a Price Equal to the Cost