Question $2[44$ Marks$]$

Thabo Civil Engineers 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 $2024.$

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 $13(50$kg$)$ bags of cement on each foundation, and each $50$kg

bag costs R$80.$

The cost of direct labour is R $22500$ per foundation completed.

Your companys 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 R $2100$ 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 R $135700$

A $10$ litre container of paint is used on each foundation at a cost of R $1600$

per container.

$2\mathrm{.}3.$ Calculate the construction overheads per year $(22$ Marks$)$