Voltage Electrical, Which Installs Sophisticated Electronic-Control Systems in New Homes

Essay

Voltage Electrical, which installs sophisticated electronic-control systems in new homes, prices jobs by using the time-and-materials method. The following data apply to a job for LMB Builders:
Labor hours: 180
Materials cost: $48,000
The following predictions, based on 30,000 direct labor hours, pertain to the company's operations for the year: $\begin{array}{l}\text { Annual overhead costs: }\\\begin{array}{lr}\text { Material handling and storage } & \$ 40,000 \\\text { Other overhead costs } & 360,000 \\\text { Annual cost of materials used } & 500,000 \\\text { Labor rate per hour, including fringe benefits } & 34\end{array}\end{array}$
Voltage Electrical adds a markup of $15 per hour on its time charges, but there is no profit markup on material costs.
Required:
Calculate the price for the LMB Builders' job.