Calculating Price by Applying a Markup Percentage to Cost Integrity Accounting F

Question

Calculating Price by Applying a Markup Percentage to Cost

Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 15.3 percent. The job for a medium-sized dance club client included the following costs:

Required:

Calculate the price charged by Integrity Accounting Firm to the dance club. If required, round to the nearest dollar.
$

Direct materials $ 5,000 Direct labor (partners and staff accountants) 90,000 Depreciation (using straight-line method) on
    Integrity’s office building 50,000

Explanation / Answer

Price to be charged Direct Material 5000 Direct Labour 90000 Total Variable Cost 95000 Add: 15.3% 14535 Price 109535 the price charged by Integrity Accounting Firm to the dance club is $ 109535

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