Construction Accounting And Financial Management (4th Edition)
Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 4, Problem 8P
To determine

Ascertain the estimated cost at completion of project and variance for each cost.

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8. A contractor has a contract to construct the sanitary sewer, water line, storm drain, and street lighting for a new subdivision. The contractor uses the cost codes in Figure 2-6. The original estimate for the sewer was $25,000, and a $3,200 change order has been approved to add a manhole. The sewer work has been completed by the contractor at a cost of $27,365. The original estimate for the waterline was $31,000, and no changes have been made to the budget. The costs to date for the waterline are $31,300 and it is estimated that it will take another $450 to complete the waterline. The water line is being installed by the contractor. The original estimate for the storm drain was $17,000, and no changes have been made to the budget. The contractor has paid $7,236 for materials and estimates that it will cost $9,764 to install the storm drain. The contractor will install the storm drain. The original estimate for the outside lighting was $23,600, and no changes have been made to the…
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