Job pricing with overhead and markup as percentages of selling price Steps:

• Calculate direct labour cost: 30 × $14 =$420
• Calculate total direct cost: $1000 +$420 = $1420
• Overhead (10%) + markup (30%) = 40% of selling price, so direct cost = 60% of selling price
• Selling price = $1420 ÷ 0.6 =$2366.67 (rounded to $2366) Why D is correct:
• Follows the formula SP = direct costs ÷ (1 − overhead % − markup %), treating both as portions of sales for full recovery. Why the others are wrong:
• A: Adds 10% only to materials ($1000 × 1.1 +$420 = $1520), ignores labour overhead and full markup
• B: Applies overhead and markup to labour only ($1000 +$420 × 1.1 × 1.3 ≈ $1601 ≈$1620), ignores markup on materials
• C: Adds percentages directly to direct costs ($1420 × 1.1 × 1.3 ≈$2030 or $1420 × 1.39 ≈$1978 ≈ $1976), compounds incorrectly

Final answer: D