The following information is known about a job which involves placing 12-inch co
ID: 3348607 • Letter: T
Question
The following information is known about a job which involves placing 12-inch concrete block Quantity of Block: 10,000 Cost per Block: $0.80 Crew: 2 masons and I helper Crew Production Rate: 400 Blocks/Day (8 hour day) Wages: Mason: $15.00h Helper:$11.50hr No equipment, scaffolding or other items needed 1. Find the total job cost and the unit direct job cost. 2. After two wecks (10 working days) the following information is known: Total Actual Block Cost: $8,000.00 (s0.80/block) Crew has placed 5,000 blocks. If the same production rate is maintained, what will be the projected cost of the job? 3. After the job is complete a review of the field reports and material invoices indicates: Actual Block Cost: $8,000.00 Actual Labor Production: 350 Blocks/Day What was the actual total direct job cost and the actual unit direct cost? 4. Relative to the data presented in Item 2, how are you doing on the job? S. As a supervisor, how do you feel about completing the job as you did before, based on the information noted in Item 3, aboveExplanation / Answer
1.) 2 masons and 1 helper is required for the job, hence the hourly labor rate is
2 x 15 + 1x11.5 = $41.5 / hour
400 blocks can be placed in an 8 hour day i.e., 400 / 8 = 50 blocks are placed per hour
Total no. of hours required to place 10000 blocks will be 10000 / 50 = 200 hours
Therefore, the total job cost will be, Ct = Labor cost + cost of blocks
Ct = 200 (hrs) x 41.5 ($/hr) + 0.8 ($) x 10000 = $ 16,300
Unit direct job cost= 16300 / 10000 = $1.63 / unit
2.)After (10 days) the actual total job cost is
Total no of hours worked = 10 x 8 = 80 hours
No. of blocks placed per hour = 5000 / 80 = 62.5 blocks / hr
Cactual = 62.5 x 41.5 + 0.8 x 5000 = $ 6593.75
At this rate the cost of the job will be 6593.75 x 2 = $ 13,187.5
3.) 350 blocks were placed in an 8 hour day i.e., 350 / 8 = 43.75 blocks are placed per hour
Total no. of hours required to place 10000 blocks will be 10000 / 43.75 = 229 hours
Therefore, the actual total job cost will be, Ct =actual Labor cost + cost of blocks
Ct = 229 (hrs) x 41.5 ($/hr) + 0.8 ($) x 10000 = $17503.5
Unit direct job cost= 17503.5 / 10000 = $1.75 / unit
4.)In relation to information given in item 2, it seems we have slowed down work considerably after the first two weeks and we are spending 29 additional hours with an increase in cost of $4316. This is approximately 33% more expensive.
5.)As a supervisor we should have taken care to ensure that the rate of work stays on track after the first two weeks so as to meet the target and cut down on costs.
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