Assuming that field supervision cost is 10 of the basic


The basic costs (labor, material and equipment) for various elements of a construction project are given as follows:

Excavation $240,000

Subgrade $100,000

Base course $420,000

Concrete pavement $640,000

Total $1,400,000

Assuming that field supervision cost is 10% of the basic cost, and the general office overhead is 5% of the direct costs (sum of the basic costs and field supervision cost), find the prorated field supervision costs, general office overhead costs and total costs for the various elements of the project.

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Operation Management: Assuming that field supervision cost is 10 of the basic
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