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Question: How would the company's cash needs change for the company in Examples I to II if they subcontracted out $25,000 of labor per month for $26,000 per month on the first project for the months of January through April?
Example I: Determine the revenues, construction costs, cash receipts, and cash disbursements for a construction company that currently has three projects under contract for the next year and anticipates picking up a fourth project during the year. For the first project, the project's owner is holding $50,000 in retention from this year's payments and will continue to hold 10% retention on all payments during the next year. The construction company is holding $26,000 retention on its subcontractors from the previous year's payments. The retention for this project is expected to be released in June. The estimated bill to the project's owner and construction costs for the first project are shown in Table.
Example II: Determine the minimum balance of the bank account for each month for the company in Examples I through II. Does the company have sufficient funds for the next year?
Manufacturing overhead is allocated at 130% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were?
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collegepak company produced and sold 60000 backpacks during the year just ended at an average price of 20 per unit.
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