Answer:
Total cost of equipment purchased = $129,426
Total cost of construction = $466,824
Explanation:
1. The computation of total cost of purchase pieces of equipment is shown below:-
Cash paid for equipment,
including sales tax of $5,300 $111,300
Freight and insurance cost while in transit $2,120
Cost of moving equipment $3,286
Wage cost for technicians $4,240
Special plumbing fixtures required
for new equipment $8,480
Total cost of equipment purchased $129,426
2. The computation of total cost of construction pieces of equipment is shown below:-
Material and purchased parts $212,000 × 0.98 $207,760
(100% - 2%)
Labor cost $201,400
Overhead cost ($21,200 + $31,800) $53,000
Cost of installing equipment $4,664
Total cost of construction $466,824
