Alarm Source Inc Alarm Source Inc

Essay

Alarm Source Inc., which installs security alarm systems in new homes, prices jobs by using the time-and-materials method. The following data apply to a job for Treadwell Homes Builders: labour hours 206; material's cost $56,000.
The following predictions, based on 20,000 direct labour hours, pertain to the company's operations for the year: $\begin{array}{l}\text { Annual overhead costs: }\\\begin{array} { l r } \text { Material handling and storage } & \$ 50,000 \\\text { Other overhead costs } & 420,000 \\\text { Annual cost of materials used } & 500,000 \\\text { Labour rate per hour, including fringe benefits } & 38\end{array}\end{array}$ Alarm Source Inc. adds a markup of $12 per hour on its time charges, but there is no profit markup on material costs.
Required:
Calculate the price for the Treadwell Homes Builders job.