Tara Is a Contractor, and She Owns a Small Home

Essay

Tara is a contractor, and she owns a small home renovation company that specializes in kitchen renovations. Tara fears she has been underbidding her projects, and that translates into lost profits that could help sustain her through slow periods. She is putting together an estimate for a potential client and has determined the following activities:
Previously, Tara was billing at a flat rate of $13 per square foot of the demo space with no additional markup. Tara would like to add a 20% markup to the cost to arrive at the final bid price. Using Activity-Based Costing (ABC), what is the final bid price for her potential customer? (If required, round calculations to two decimal places.)