A construction company undertakes a project with direct materials cost of $50,000, direct labor cost of $30,000, and overhead of $20,000. The company estimates to complete the project in 3 months.

• Requirements:
  • Prepare a job cost sheet for the construction project.
  • Allocate overhead costs using a predetermined rate based on direct labor hours.
  • Calculate the total cost of the project.
  • Recommend strategies to manage project costs and improve profitability.
  • Discuss the importance of accurate job costing in construction project management.