Acron Construction Charges Each Customer a Price Equal to the Cost

Multiple Choice

Acron Construction charges each customer a price equal to the cost of direct materials and direct labour plus 40%. Job 126 included the following costs: Direct materials $60,000
Direct labour $46,000
What price does the company charge for Job 126?

A) $46,800
B) $65,400
C) $86,000
D) $148,400