Design Arts Associates is an interior decorating firm in Berlin. The following costs were incurred in the firm’s contract to redecorate the mayor’s offices. Direct material used .....................................................................................3,500 eurosDirect professional labor .............................................................................6,000 euros The firm’s budget for the year included the following estimates: Budgeted overhead ...............................................................................400,000 eurosBudgeted direct professional labor .................................................250,000 euros Overhead is applied to contracts using a predetermined overhead rate calculated annually. The rate is based on direct professional labor cost.Required: Calculate the total cost of the firm’s contract to redecorate the mayor’s offices. (Remember to express your answer in terms of euros.)
Design Arts Associates is an interior decorating firm in Berlin. The following costs were incurred in the firm’s contract to redecorate the mayor’s offices.
Direct material used .....................................................................................3,500 euros
Direct professional labor .............................................................................6,000 euros
The firm’s budget for the year included the following estimates:
Budgeted
Budgeted direct professional labor .................................................250,000 euros
Overhead is applied to contracts using a predetermined overhead rate calculated annually. The rate is based on direct professional labor cost.
Required: Calculate the total cost of the firm’s contract to redecorate the mayor’s offices. (Remember to express your answer in terms of euros.)
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