A road construction company worked on four different road projects at the same time for a...
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A road construction company worked on four different road projects at the same time for a period of six months. These projects are known as J, H, I and K projects. The road distance in Kms and cost data related to the projects are shown below. COST DATA Road distance in kms Cost of gravel- TZS per km Cost of cement- TZS per km Cost of Sand- TZS per km Cost of water- TZS per km Administrative costs - TZS Other overhead costs- TZS PROJECT J PROJECT II 30 60 20,000,0000 20,000,0000 15,000,000 1,000,000 200,000 The overhead costs incurred in six months are as follows: Cost of equipment - TZS Salaries- TZS PROJECTS 500M 220M 40M 40M 15,000,000 1,000,000 200,000 PROJECT I 20 25,000,0000 20,000,000 1,000,000 200,000 PROJECT K 10 25,000,0000 20,000,000 1,000,000 200,000 a) Determine the total variable cost for each type of road project b) Using absorption costing method to compute the unit cost per km of each type of road project. Use the total cost of gravel per road project as a criterion for allocating the overhead costs to the four road projects A road construction company worked on four different road projects at the same time for a period of six months. These projects are known as J, H, I and K projects. The road distance in Kms and cost data related to the projects are shown below. COST DATA Road distance in kms Cost of gravel- TZS per km Cost of cement- TZS per km Cost of Sand- TZS per km Cost of water- TZS per km Administrative costs - TZS Other overhead costs- TZS PROJECT J PROJECT II 30 60 20,000,0000 20,000,0000 15,000,000 1,000,000 200,000 The overhead costs incurred in six months are as follows: Cost of equipment - TZS Salaries- TZS PROJECTS 500M 220M 40M 40M 15,000,000 1,000,000 200,000 PROJECT I 20 25,000,0000 20,000,000 1,000,000 200,000 PROJECT K 10 25,000,0000 20,000,000 1,000,000 200,000 a) Determine the total variable cost for each type of road project b) Using absorption costing method to compute the unit cost per km of each type of road project. Use the total cost of gravel per road project as a criterion for allocating the overhead costs to the four road projects
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Business Statistics For Contemporary Decision Making
ISBN: 978-1118749647
8th edition
Authors: Black Ken
Posted Date:
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