You are analyzing the usage and the cost of a concrete pump for the concrete job for a foundation wall project. The building foundation wall has a quantity takeoff of 15,000 ft3. Your contract was estimated based on the equipment use of 1 machine hour per 1,000 ft3 of concrete at the budgeted equipment rate of $200 per machine hour. The actual use of equipment on site was 10 machine hours and the actual rental rate was $175 per machine hour. What is the total equipment cost variance?

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To calculate the total equipment cost variance we need to compare the budgeted cost with the actua... View the full answer