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MidSessionPracticeQuestionGuidance
09/04/2008
Solutions to Practice Midsession Questions
QUESTION 1
(a)
The most common mistake was that students forgot to calculate the cost per activity.
Some
students also failed to follow instructions about calculations (keep numbers to 2 decimal points).
Allocate Resources to Activities
Job Size
Estimating
and Job Setup
Dealing
with
Nonroutine Jobs
Other
Total
Wages and salaries
220,000
55,000
165,000
110,000
550,000
Disposal fees
510,000

340,000

850,000
Onsite supplies
46,750
25,500
8,500
4,250
85,000
776,750
80,500
513,500
114,250
1,485,000
Calculate cost per activity
Total
Cost
Quantity of
Activity
Cost Per activity
Job size
776,750
125,000
6.21
Estimating and job setup
80,500
650
123.85
Dealing with nonroutine jobs
513,500
200
2,567.50
1,370,750
(b)
Common mistakes: people did not treat costs appropriately, or forgot to include certain costs
altogether e.g.
., they only calculated costs associated with square metres.
i. Cost for a routine job: 100 sq metres
Job size
621.00
Estimating and job setup
123.85
Dealing with nonroutine jobs

744.85
ii. Cost for a nonroutine job: 100 sq metres
Job size
621.00
Estimating and job setup
123.85
Dealing with nonroutine jobs
2,567.50
3,312.35
(c)