The basic costs (labor, material and equipment) for various elements of a constr
ID: 458067 • Letter: T
Question
The basic costs (labor, material and equipment) for various elements of a construction project are given as follows:
Excavation $240,000
Subgrade $100,000
Base course $420,000
Concrete pavement $640,000
Total $1,400,000
Assuming that field supervision cost is 10% of the basic cost, and the general office overhead is 5% of the direct costs (sum of the basic costs and field supervision cost), find the prorated field supervision costs, general office overhead costs and total costs for the various elements of the project.
Explanation / Answer
Excavation Costs $240,000, Subgrade Cost-$100,000, Base Course $420,000 Concrete Pavement $640,000 Total $1,400,000.
Field Supervision Cost is 10% of the Basic Cost ,General Over head Cost is 5% of the Direct costs(Sum of the Basic Costs and Field Supervision Cost)
Total Cost=Total Fixed Cost +Total Variable cost
Basic Cost is $420,000 which is 10% that is $42,000
Overhead cost is 5% of $42,000 which $2100
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