Oshana Construction has just s gned a contract with Tangi Enterprises 'or the construction of a...

 

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Oshana Construction has just s gned a contract with Tangi Enterprises 'or the construction of a machine. The management accountant.consiructed the following network diagram for the project FACULTY OF COMMERCE, MANAGEMENT AND LAW 48 96 125 95 128 The duration and variable cost under narmal and accelerated circumstances af the vanous activities are as foliows Estimated variable implementation Cost slope N$ Activity Estimated time (hours) costs Normal Accelerated Normal (NS) Accelerated (NS) 224 000 308 000 2 000 A-B 96 64 A-C 95 90 120 000 135 000 B-e 110 000 126 000 1 000 B-D 48 32 172 000 193 600 1 200 C-E 128 B5 133 C00 193 000 1 500 D-E 125 779 OU0 955 600 The accelerated duration of activity C-E is uncertain The estimated hours are as follows Masi oplimistic time 98 haurs Most ikeiy tme 107 hours Mast pessimistic time 134 hours Fixed coste are absorbed at a rate of NS 750 per hour and are not regardec as committed fixed costs Otner direct costs for the project amount to NS250 000 Marks Sub total Required Total 2 Calculatu the cost slope for activity A-C. Calculate the expected duration of the acceleratea'orash activity C-E Ca culate the duration of the varicus routes and determine the critical path Set nut the programme lo be followed in order to reduce total project time in the most cost effic urt manner and slate he number of hours for complet on of the project that will ensure minimum total costs. Calculate the accelerated/crash cost of the project. 41 5. 4.2 2 4.3 15 22 44 25 4.5 25 Total Oshana Construction has just s gned a contract with Tangi Enterprises 'or the construction of a machine. The management accountant.consiructed the following network diagram for the project FACULTY OF COMMERCE, MANAGEMENT AND LAW 48 96 125 95 128 The duration and variable cost under narmal and accelerated circumstances af the vanous activities are as foliows Estimated variable implementation Cost slope N$ Activity Estimated time (hours) costs Normal Accelerated Normal (NS) Accelerated (NS) 224 000 308 000 2 000 A-B 96 64 A-C 95 90 120 000 135 000 B-e 110 000 126 000 1 000 B-D 48 32 172 000 193 600 1 200 C-E 128 B5 133 C00 193 000 1 500 D-E 125 779 OU0 955 600 The accelerated duration of activity C-E is uncertain The estimated hours are as follows Masi oplimistic time 98 haurs Most ikeiy tme 107 hours Mast pessimistic time 134 hours Fixed coste are absorbed at a rate of NS 750 per hour and are not regardec as committed fixed costs Otner direct costs for the project amount to NS250 000 Marks Sub total Required Total 2 Calculatu the cost slope for activity A-C. Calculate the expected duration of the acceleratea'orash activity C-E Ca culate the duration of the varicus routes and determine the critical path Set nut the programme lo be followed in order to reduce total project time in the most cost effic urt manner and slate he number of hours for complet on of the project that will ensure minimum total costs. Calculate the accelerated/crash cost of the project. 41 5. 4.2 2 4.3 15 22 44 25 4.5 25 Total

Answer rating: 100% (QA)

Answer 41 Cost slope for activity AC Accelerated cost Normal cost Normal time Accelerated time 13500... View the full answer