00:01
We have to evaluate the cost and quoted price for the two jobs using activity based costing.
00:07
So for the first one, we'll evaluate the cost and quoted price for the shopping complex.
00:35
So firstly, we'll calculate the overhead allocation rate for each activity.
01:00
So site supervisors is evaluated as 11 ,25 ,000 divided by 5 ,000.
01:25
Sites visit we get $225 per site visit.
01:38
Then for planners, we have is $8 ,75 ,000 divided by 2 ,700.
01:51
For the current planning documents, we get 324 .07 per planning document.
02:10
Next we will evaluate the property related.
02:21
So putting in the values $30 ,000 divided by 5 lakh labor hours.
02:31
So we get the value as $6 per labor hour.
02:41
Further, we'll evaluate the overhead cost for the shopping complex.
02:53
Under it, we will evaluate site visits where 20 visits multiplied by $225 per visit.
03:21
We get the value as $4 ,500.
03:25
For planning documents, we have five documents multiplied by $324 .07 per document.
03:44
We get the value as $1 ,620 .35.
03:49
Next we will evaluate labor hours.
03:58
So 57 ,500 hours multiplied by $6 per hour.
04:04
We get the value as $3 ,45 ,000.
04:08
Next evaluating total cost for the shopping complex.
04:28
So material cost is $34 ,50 ,000.
04:40
Then we have labor cost, which is evaluated as 57 ,500 hours multiplied by $7 per hour.
05:01
We get 4 ,02 ,500 hours.
05:09
Further, we will evaluate overhead cost, which is evaluated as $4 ,500.
05:21
Wherein we add $1 ,620 .35.
05:27
Wherein we add $3 ,45 ,000.
05:31
So the value then is obtained as $3 ,51 ,120 .35.
05:43
And lastly, we will evaluate total cost.
05:47
So we get $4 ,50 ,000.
06:00
Wherein we add $4 ,200 ,000.
06:04
$2 ,500.
06:07
Wherein we add $3 ,51 ,120 .35...