Under the instruction of Malaysian Labour Department, company T is required to provide 90 000 units of
Question:
Under the instruction of Malaysian Labour Department, company T is required to provide 90 000 units of modular dormitories with size 600 square feet to its 450 000 workers by the end of 2021. In 2010, the 1000 units of similar modular dormitory but with smaller size of 400 square feet can be constructed and the material cost is RM 8 millions. Given the cost capacity factor is 0.72. The cost indices for 2010 and 2021 are 100 and 219, respectively.
On the other hand, the estimated manufacturing cost of the first 1000 units of modular dormitories are RM 0.5 million. Assume that the manufacturing cost of the dormitories directly proportional to its manufacturing time following a learning curve of 0.85. By using the manufacturing cost of the 50 000th dormitories as your average time for estimating the manufacturing cost, calculate the total cost for all the 90 000 units of modular dormitories.
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay