Custom homebuilders ch designs and constructs high-end


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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000

Building costs per square foot (basic). . . . . . . . . . . . . . . $ 90

Building costs per square foot (moderate) . . . . . . . . . . . $ 150

Building costs per square foot (luxury) . . . . . . . . . . . . . . $ 225

Appliances (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

Appliances (moderate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000

Appliances (luxury) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000

Utilities costs (if required) . . . . . . . . . . . . . . . . . . . . . . . . . $40,000

Required :
A customer has expressed interest in having CH build a moderate, 3,000 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?

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Managerial Accounting: Custom homebuilders ch designs and constructs high-end
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