Question

Exercise 5-28 Methods of Estimating Costs: Engineering Estimates (LO 5-2) Custom Homebuilders (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 Building costs - per square foot (basic) Building costs - per square foot (moderate) Building costs - per square foot (luxury) Appliances (basic) Appliances (moderate) Appliances (luxury) Utilities costs (if required) $ 38,000 $ 110 $ 200 $ 250 $ 33,000 $ 43,000 $ 63,000 $ 58,000 Required: A customer has expressed interest in having CH build a moderate, 3,600 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 costs (if required) Estimated cost

Answer 1

Administrative cost Building Cost - per Square foot (Moderate) Appliance (Moderate) Utilities cost (if required) Estimated Cost $ $ $ $ $ 38,000 Given 720,000 3600 sq ft x $200 per sq ft 43,000 given 801,000 Administrative cost of home in this area is 38000 Building cost of buildinga moderate home is $200 per sq ft x 3600 Sq ft home Appliance cost of moderate home is given as 43000 No utilities are required so o Add all the expenses to get estimated cost