Question $2$

$[44$ Marks$]$

Thabo Civil Engineers Pty Ltd has been in the construction business for the past $17$ years and is considered one of the major players in the industry. They are currently part of a team of four major construction companies engaged in a massive low$-$tomedium$-$income housing project, in which their part is to lay and complete the foundation for each house and leave the rest to other team members. This project commenced on $3$ January $2024.$

As the project cost accountant of Thabo Civil Engineers Pty Ltd$,$ you have recorded the following monthly and annual cost figures with respect to this housing project:

On average, your company completes $350$ foundations per month and, in the process, uses $13(50kg)$ bags of cement on each foundation, and each $50kg$ bag costs R$80.$

The cost of direct labour is R $22500$ per foundation completed.

Your company's site supervisor is paid R $54000$ per month.

Four different types of earth moving machinery used by your company are leased at R $250000$ each per month.

Each foundation completed is subject to a quality check at a cost of $R12500$

Each foundation completed uses $8500$ bricks at a cost of $R2100$ per $1000$ bricks.

A purchasing agent used to source the best prices for construction materials for your company is paid a commission of $R16000$ per month

Your company is using this housing project to advertise itself to potential customers at a cost of R $25400$ per month

An on$-$site administrative office has been set up$,$ and the total monthly salary bill for the six people running it amounts to $R85000$

The annual insurance bill paid by your company for this project amounts to $R135700$

A $10$ litre container of paint is used on each foundation at a cost of $R1600$ per container

HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$

Required:

Calculate the following annual figures for your company:

$2\mathrm{.}1$ Direct labour per year

$(4$ Marks$)$

$2\mathrm{.}2$ Direct material per year

$(12$ Marks$)$

$2\mathrm{.}3$ Construction overheads per year

$(22$ Marks$)$

$2\mathrm{.}4$ Total non$-$construction costs per year

$(6$ Marks$)$

$6$

HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$