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Page of 2 Question # 3 You decide to get some actual on-site experience this sum

ID: 377598 • Letter: P

Question

Page of 2 Question # 3 You decide to get some actual on-site experience this summer by taking a job that will have you "in the trenches". You get yoer wish and find yourself working in a muddy trench installing 8" storm drain pipe. Your crew foreman neods to know some information about unit cost and productivity, since they are bidding on a similar job next week. He asks you to help him with determining the following, given the information below. Your crew consists of three labourers (8 hrs.) and one foreman for y day. You work with an excavator that stays on-site all day. The excavator digs the trench, moves the cage, brings sand into the excavation, and lifts pipe down to you and your workers in the trench. You work in a deep excavation, so a steel safety cage is required. Assume the trench is backfilled with native soil and any excess is stockpiled to be removed later. Assume the following: - Labourer earns $24.00/hr Excavator rents$100.00/hr. No overtime -Bedding sand costs $30.00/yd Foreman earns $28,00/h. - Work is 8hr /day, 5 days/week Plate Compactor rents for $175.00/day -Payroll Burden/MERC's is 24% -Profit is 10% Pipe costs $210.00 for a 10 ft. length of pipe - 4 yd' of sand is needed per foot of pipe Safety cage rents for S125.00/day -Overhead is 15% -The crew can install 20 lengths of pipe/day a) What is daily crew cost?

Explanation / Answer

Formulae key

Labourer hours per day 24 Foreman hours per day 4 Work hours Per day 8 Work days Per week 5 Sand needed Per foot of pipe, yd3 0.25 profit 10% Payroll burden/MERC's 24% Overhead 15% Crew capacity Length of pipe/day 20 Pipe costs Per 10 feet length - $ 210 Safety cage rents Per day - $ 125 Labor wages Per hour -$ 24 Excavator rent Per hour -$ 100 Bedding sand c osts Per yd3 30 Plate compactor rents Per day 175 Payroll burden/MERC's 24% Foreman salary Per hour 28 a) Daily crew cost Labourer cost 576 Foreman cost 112 Total 688 b) productivity of labourer 1.2 Productivity of foreman 0.2 c) Daily crew cost 688 Per hour rate 24.6 d) productivity of crew 1.2 e) Pipe costs 420 Safety cage rents 125 Daily crew cost 688 Excavator rent 800 Bedding sand costs 80 Plate compactor rents 175 Manufacturing costs 2288 Overhead 343 payroll burden - 24% 549 Operating cost 3180 Profit - 10% 318.032 Sales 3498 Daily capacity 20 Daily capaciity in feet 160 Quote per feet 21.9