Question

In: Accounting

Kid Rock Const.: Kid Rock has decided to pour a footing and foundation for his new...

Kid Rock Const.: Kid Rock has decided to pour a footing and foundation for his new home.  His original estimate for the labor to complete the footings and foundations was $10,000.  He decided to subcontract this work out for $10,200.  The subcontractor has billed Kid Rock $3,200 for this work.  Kid Rock’s original estimate for the concrete material to complete the footings and foundations was $15,000 and a change order of $6,000 was approved to increase the amount of concrete.

What is the original total estimate for the pouring of footing and foundation (labor and concrete)?

Group of answer choices

$25,200

$31,200

$25,000

22,000

Solutions

Expert Solution

Notes:
Estimate for the labour for footings and foundation   $                      10,000
Contract given for this   $                      10,200
Estimate for material   $                      15,000
Change order approved to increase the amount   $                        6,000
Solution:
CALCULATION OF ORIGINAL TOTAL ESTIMATE
Total Estimate for the labour for footings and foundation   $                      10,000
Total Estimated of concrete for completion of work $                      15,000
Total Estimate for the pouring of footing and foundation $                      25,000
Answer = Option 3 = $ 25,000

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