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Question 3 (48 Marks) Supreme Construction (Pty) Ltd is one of the big 7 construction companies in South Africa and has been in the construction

Question 3 (48 Marks) Supreme Construction (Pty) Ltd is one of the big 7 construction companies in South Africa and has been in the construction business for the past 25 years. This company is considered as one of the major players in the construction industry. The company is currently part of a team of four major construction companies engaged in a massive low-to-medium income housing project; in which its part is to lay and complete the foundation for each house and leave the rest to other team members. This project commenced on 1 June 2022. As the project cost accountant of Supreme Construction (Pty) Ltd, you have recorded the following monthly and annual cost figures with respect to this housing project: On average, your company completes 450 foundations per month; and in the process uses 14 (50kg) bags of cement on each foundation; and each 50kg bag costs R110. The cost of direct labour is R 24 000 per foundation completed. Your companys site supervisor is paid R 65 000 per month Four different types of earth moving machinery used by your company are leased at R 310 000 each per month Each foundation completed is subject to a quality check at a cost of R 15 000 Each foundation completed uses 9 500 bricks at a cost of R 2 000 per 1 000 bricks A purchasing agent used to source the best prices for construction materials for your company is paid a commission of R 21 000 per month Your company is using this housing project to advertise itself to potential customers at a cost of R 45 200 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 125 000 The annual insurance bill paid by your company for this project amounts to R 155 800 A 10-litre container of paint is used on each foundation at a cost of R 2 500 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)

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