
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Before you begin this assignment, review the Tying It All Together feature in the chapter
Granite Construction Incorporated is a major construction firm whose projects include roads, highways, bridges, dams, tunnels, mass transit facilities, and airports. Suppose Granite Construction wants to bid on a project to construct a bridge in Nevada Estimators have projected the expected direct materials costs to be $55 million and the direct labor costs (including design and construction) to be $30 million. The company uses a predetermined
Requirements
- What items would most likely be included in direct materials?
- Calculate the estimated direct costs, the indirect costs, and the total costs for the project.
- What amount should Granite Construction bid for the project?
- Why does Granite Construction include both direct and indirect costs when calculating the markup?
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