A. What is the cost per square foot of the 2,000 square feet house? B. You are also considering to expand the floor area to 4,000 square feet, estimate the construction costs if: i. All costs in the table change proportionately to the size increase. B. ii. The first two cost items do not change at all; all others are proportionate.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 5TP: You own a construction company and have recently received a contract with the local school district...
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Your sister who married an American businessman wants to build a rest house in the highlands of Bukidnon. You have consulted a construction firm to contract the said project and your brother-in-law wants the quotation price to be in US Dollars. Now, you have received the estimate of the construction cost for the 2,000-square foot house will be $150,000. The information below of each cost category already include labor, material and overhead costs, they have been divided by percentage break down. A. What is the cost per square foot of the 2,000 square feet house?

B. You are also considering to expand the floor area to 4,000 square feet, estimate the construction costs if: i. All costs in the table change proportionately to the size increase.

B. ii. The first two cost items do not change at all; all others are proportionate.

Your sister who married an American businessman wants to build a rest
house in the highlands of Bukidnon. You have consulteda construction
firm to contract the said project and your brother-in-law wants the
quotation price to be in US Dollars. Now, you have received the estimate
of the construction cost for the 2,000-square foot house will be
$150,000. The information below of each cost category already include
labor, material and overhead costs, they have been divided by percentage
break down. A. What is the cost per square foot of the 2,000 square feet
house?
Items
% To the total cost
Permits and fees
8
Access roads and site
15
preparation
Foundation and
13
masonry
Walls, flooring,
carpentry
Heating, cooling and
ventilation
Wiring, plumbing and
communication
Roofing
12
13
10
12
Painting, finishing and
furnishing
17
100
Transcribed Image Text:Your sister who married an American businessman wants to build a rest house in the highlands of Bukidnon. You have consulteda construction firm to contract the said project and your brother-in-law wants the quotation price to be in US Dollars. Now, you have received the estimate of the construction cost for the 2,000-square foot house will be $150,000. The information below of each cost category already include labor, material and overhead costs, they have been divided by percentage break down. A. What is the cost per square foot of the 2,000 square feet house? Items % To the total cost Permits and fees 8 Access roads and site 15 preparation Foundation and 13 masonry Walls, flooring, carpentry Heating, cooling and ventilation Wiring, plumbing and communication Roofing 12 13 10 12 Painting, finishing and furnishing 17 100
B. You are also considering to expand the floor area to 4,000 square feet,
estimate the construction costs if: i. All costs in the table change
proportionately to the size increase.
Transcribed Image Text:B. You are also considering to expand the floor area to 4,000 square feet, estimate the construction costs if: i. All costs in the table change proportionately to the size increase.
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