Methods of Estimating Costs: Engineering Estimates

connect An are induded in Connect EXERCISES 5-25. Methods of Estimating Costs: Engineering Estimates (LO 5-2) Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote 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 Administrative costs _ Building costs per square foot (basic).. Building costs per square toot (moderate) . Building costs per square foot (luxury) Appliames (basic) . Appliawes (moderate) Appliames (luxury) Utilities costs (it required) Required 20, ooo S 90 S 150 $ 225 S15,ooo 25,000 S45.ooo S40,ooo A customer has expressed interest in having CH build a moderate, 3,000 square-foot home on a vacant lot, which does not have utilities. Based on the engineering estimates above, what will such a house cost to build? (LO 5-2) 5-26. Methods of Estimating Costs: Engineering Estimates Cray-Z Consultants provides management accounting advice to not-fotprofit firms. It em- ploys three levels of consultants, based on experience and education: partner, senior, and associate When Cray-Z considers bidding on jobs, it estimates the costs using a set of stan-