24 Jul BASED ON THE ENGINEERING ESTIMATES ABOVE WHAT WILL SUCH A HOUSE COST TO BUILD?
Custom Home builders ( Show more Exercise 5-25 Methods of Estimating Costs: Engineering Estimates (LO 5-2) Custom Home builders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas which it uses to quote jobs. These include costs for materials labor and other costs. These estimates are also dependent on the region of the country a particular customer lives. Below are the cost estimates for one region in the Midwest: Administrative costs $ 20000 Building costs per square foot (basic) $ 90 Building costs (moderate) $ 150 Building costs per square foot (luxury) $ 225 Appliances (basic) $ 15000 Appliances (moderate) $ 25000 Appliances (luxury) $ 45000 Utilities costs (if required) $ 40000 Required: A customer has expressed interest in having CH build a moderate 3000 square-foot home on a vacant lot which does not have utilities. Based on the engineering estimates above what will such a house cost to build? Administrative costs ___________________ Building costs per square foot (moderate) _________________ Appliances (moderate) __________________ Utilities cost (if required) ___________________ Estimated cost _________________ Show less
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