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ABC Sdn Bhd is an engineering consulting company that charge different rate for its consulting...

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Accounting

ABC Sdn Bhd is an engineering consulting company that charge different rate for its consulting services. Wage cost per consultant hour provided by senior engineer consultant are charge at RM90 while wage cost per consultant hour provided by junior engineer consultant are charge at RM52. The fixed overhead absorption rate per consultant hour is RM41.

The firm adds a 30% mark-up on marginal cost to arrive at the price to change their clients. For client DEF Sdn Bhd, 55 hours of senior consultant time and 25 hours of junior consultant time have been incurred. All staff are paid on an hourly basis.

What price should be charged to DEF Sdn Bhd?

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