Florian Plant Services Completed a Special Landscaping Job for Pierre

Essay

Florian Plant Services completed a special landscaping job for Pierre Designs Company.Florian uses ABC and has the following predetermined overhead allocation rates:
$\begin{array}{llc}&& \text { Predetermined Overhead } \\\text { Activity } & \text { Allocation Base } &\text { Allocation Rate }\\\hline \text { Designing } & \text { Number of designs } & \$ 275 \text { per design } \\\text { Planting } & \text { Number of plants } & \$ 15 \text { per plant }\end{array}$ The Pierre Designs project required $1,200 in landscape materials,$700 in direct labor,one design,and 35 plants.
Requirements:
1.What is the total cost of the work done for Pierre Designs?
2.If Pierre Designs paid $3,900 for the job,what is the operating income or loss?
3.If Florian desires an operating income of 50% of cost,how much should the company charge for the Pierre Designs project?