The Allianz group provides consulting services to a number of Caribbean countries in the area of renewable energy. To determine the cost of each consulting engagement, The Allianz group uses a job order system. Costs incurred by the group on projects that are not identifiable with specific clients, are charged to jobs via a predetermined overhead rate (15 %). Clients pay the Allianz group within 30 days of the date of the Invoice. The Allianz group’s standard markup is 20%. In December 2020, The Allianz group completed a project for the St Lucia Power Company (LUCELEC). The following costs were incurred by Allianz in completing the project for LUCELEC. Consulting Staff $4,500,000, Office Staff 300,000, Travel to/from St Lucia 100,000 and Other office costs. 100,000. Required 1. Compute the amount of the invoice to be presented to LUCELEC.
The Allianz group provides consulting services to a number of Caribbean
countries in the area of renewable energy. To determine the cost of each
consulting engagement, The Allianz group uses a job order system. Costs
incurred by the group on projects that are not identifiable with specific
clients, are charged to jobs via a predetermined
Clients pay the Allianz group within 30 days of the date of the Invoice. The
Allianz group’s standard markup is 20%.
In December 2020, The Allianz group completed a project for the St Lucia
Power Company (LUCELEC). The following costs were incurred by Allianz in
completing the project for LUCELEC. Consulting Staff $4,500,000, Office
Staff 300,000, Travel to/from St Lucia 100,000 and Other office costs.
100,000.
Required
1. Compute the amount of the invoice to be presented to LUCELEC.
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