The product user will be required to pay a service charge fee of 0.5% of the transaction value once the transaction is complete. Ideally, it’s the buyer of a product will incur the cost of the transaction.
August 24, 2020
answer-1515027-2
August 24, 2020

Contemporary Trends is an interior decorating firm in Munich

Contemporary Trends is an interior decorating firm in Munich. The following costs were incurred in the firm’s contract to redecorate the mayor’s offices. Direct material used ……………………………………………………………………………………………………………………..     €4,100 Direct professional labor ………………………………………………………………………………………………………………..      €7,000 The firm’s budget for the year included the View complete question » Contemporary Trends is an interior decorating firm in Munich. The following costs were incurred in the firm’s contract to redecorate the mayor’s offices. Direct material used ……………………………………………………………………………………………………………………..     €4,100 Direct professional labor ………………………………………………………………………………………………………………..      €7,000 The firm’s budget for the year included the following estimates: Budgeted overhead ……………………………………………………………………………………………………………………         €510,000 Budgeted direct professional labor ………………………………………………………………………………………………..           €300,000 Overhead is applied to contracts using a predetermined overhead rate calculated annually. The rate is based on direct professional labor cost. Required: Calculate the total cost of the firm’s contract to redecorate the mayor’s offices. (Remember to express your answer in terms of euros. On the day this exercise was written the euro was valued at 1.2905 U.S. dollars.)


 

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