Answer:
$5,390
Explanation:
For computing the total cost estimated first we need to find out the total cost per billable hour which is shown below:
Total cost per billable hour is
= (Salary & Benefits + Office & Admin costs) Ă· (Billable hours)
= ($672,000 + $406,000) Ă· (7,000 billabe hours)
= $154
Now the total estimated cost is
= Requied hours Ă— total cost per billabe hours
= 35 hours Ă— $154
= $5,390
We simply applied the above formulas