A call to bid was advertised in a national newspaper for the construction of a transmission line from a mini hydroelectric power plant to a substation which is 5.025 kilometers away. Tanalized (treated with the trademarked timber preservative Tanalith) timber electric posts must be placed at intervals of 60 meters. The electric posts must be 15 meters long, 20mm at the tip and 30 mm at the butt. The power house is 15 meters from the first electric post, and the substation is 20meters from the last electric post. Prepare the estimate for the job using the following data: Cost of one tanalized timber post 10 meters long = P880each, delivered to the site; laborers at P30.00 per day. Five laborers can dig and erect 3 posts each day.Electricians at P50.00 per day. Four electricians can string wires complete 150 meters per day. Electric wire costs P1.50 per meter. Use only 5 laborers and 4 electricians for the project and a fore-man at P100.00 per day. Compute the direct cost and add 15%for contingencies and 20% profit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

A call to bid was advertised in a national newspaper for the construction of a transmission line from a mini hydroelectric power plant to a substation which is 5.025 kilometers away. Tanalized (treated with the trademarked timber preservative Tanalith) timber electric posts must be placed at intervals of 60 meters. The electric posts must be 15 meters long, 20mm at the tip and 30 mm at the butt. The power house is 15 meters from the first electric post, and the substation is 20meters from the last electric post. Prepare the estimate for the job using the following data: Cost of one tanalized timber post 10 meters long = P880each, delivered to the site; laborers at P30.00 per day. Five laborers can dig and erect 3 posts each day.Electricians at P50.00 per day. Four electricians can string wires complete 150 meters per day. Electric wire costs P1.50 per meter. Use only 5 laborers and 4 electricians for the project and a fore-man at P100.00 per day. Compute the direct cost and add 15%for contingencies and 20% profit.

Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Relevant cost analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education