Exercise 5-25 Methods of Estimating Costs: Engineering Estimates (LO 5-2)

Custom Home builders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. These estimates are also dependent on the region of the country a particular customer lives. Below are the cost estimates for one region in the Midwest:

Administrative costs	$	20,000
Building costs