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kamogelop770 asked for the first time
in Accounting·
12 Sep 2022

The Big Seven Construction (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 2021.
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:
4

On average, your company completes 350 foundations per month; and in the process uses 13 (50kg) bags of cement on each foundation; and each 50kg bag costs R80.
The cost of direct labour is R 22 500 per foundation completed.
Your company’s site supervisor is paid R 54 000 per month
Four different types of earth moving machinery used by your company are
leased at R 250 000 each per month
Each foundation completed is subject to a quality check at a cost of R 12 500
Each foundation completed uses 8 500 bricks at a cost of R 2 100 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 16 000 per month
Your company is using this housing project to advertise itself to potential
customers at a cost of R 25 400 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 85 000
The annual insurance bill paid by your company for this project amounts to R 135 700 A 10 litre container of paint is used on each foundation at a cost of R 1 600
per container

Required:
Calculate the following annual figures for your company: 3.1 Direct labour per year
3.2 Direct material per year
3.3 Construction overheads per year
3.4 Total non-construction costs per year


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