Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please assist here Question 3 (48 marks) The Big Seven Construction (Pty) Ltd has been in the construction business for the past 17 years and

please assist here
image text in transcribed
image text in transcribed
Question 3 (48 marks) The Big Seven Construction (Pty) Ltd has been in the construction business for the past 17 years and is considered one of the major players in the industry. They are currently part of a team of four major construction companies engaged in a massive low-to-medium income housing project; in which their part is to lay and complete the foundation for each house and leave the rest to other team members. This project commenced on 3 January 2021. As the project cost accountant of Thabo Civil Engineers Pty Ltd, you have recorded the following monthly and annual cost figures with respect to this housing project: - On average, your company completes 350 foundations per month; and in the process uses 13 (50kg) bags of cement on each foundation; and each 50kg bag costs R80. - The cost of direct labour is R 22500 per foundation completed. - Your company's site supervisor is paid R 54000 per month - Four different types of earth moving machinery used by your company are leased at R 250000 each per month - Each foundation completed is subject to a quality check at a cost of R 12500 - Each foundation completed uses 8500 bricks at a cost of R2.100 per 1000 bricks - A purchasing agent used to source the best prices for construction materials for your company is paid a commission of R 16000 per month - Your company is using this housing project to advertise itself to potential customers at a cost of R 25400 per month - An on-site administrative office has been set up and the total monthly salary bill for the six people running it amounts to R 85000 - The annual insurance bill paid by your company for this project amounts to R1357 - A 10 litre container of paint is used on each foundation at a cost of R 1600 per container Required: Calculate the following annual figures for your company: 3.1 Direct labour per year (4 marks) 3.2 Direct material per year (16 marks) 3.3 Construction overheads per year (22 marks) 3.4 Total non-construction costs per year (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Guide Government Auditing Standards And Single Audits

Authors: AICPA

1st Edition

1945498447, 978-1945498442

More Books

Students also viewed these Accounting questions