Lakh) of a project of laying a railway line between two places.
700 lakh by cutting the expenditure on administration equally in all the years.
What will be the percentage cut for 1989?
proportion to the estimated cost for material and labour, what fraction of the
total length is proposed to be completed by the third year?
materials for all the years to the total labour cost?
onwards, by how much will the estimated cost rise?
estimated for the project has been spent. If for 1991, the actual amount spent
was equal to that which was estimated, by what percent (approximately) has the
actual expenditure exceeded the estimated expenditure?
contingencies is felt inadequate and is therefore doubled. By what percent does
the total estimate increase?
= 52.1+267.5+196.4+209.5 = 725.5 lakhs.
If it has to be kept within 700 lakhs, the expenditures
have to be cut by 25.5 laks.
Cut in expenditure every year
= 25.5/4 = 6.375 lakhs.
Hence, percentage cut for 1989
= 6.375 / 15 × 100 = 42.5%.
2. b The estimated costs of material and labour for different
years are :
1988 = 2.1
1989 = 95+70+15+25+25 = 230
1990 = 80+45+12+18+20 = 175
1991 = 75+60+16+21+18 = 190
Required proportion
2.1 + 230 + 175/2.1 + 230 + 175 + 190 = 0.682
3. b Total material cost for all years
= (95+80+75+70+45+60+15+12+16+25+18+21) = 532
Total labour cost for all years = (2.1+25+20+18) = 65.1
Hence ratio = 532 : 65.1 ≈ 8 : 1
4. b In the given table we can see that the costs that can be taken under the head “Materials” are : Cement,
Steel, Bricks and Other building materials.
The estimated cost of these heads in 1990
= 80 + 45 + 12 + 18 = 155
The estimated cost of these heads in 1991
= 75 + 60 + 16 + 21 = 172
Since the cost of material rises by 5%, or would rise by 0.05X (155 + 172) = Rs.16.35 lakhs.
5. b Till 1990, actual amount spent = Rs.725.5 lakhs
Expenditure for 1991 as estimated = 209.5 lakhs.
Required percentage increase = 209.5/725.5 × 100 = 28.89%
6. a Total estimate = Rs. 725.5 lakh;
Estimate of contingencies = (1 + 15 + 4.2 + 5) = Rs.25.2 lakh.
Now as the estimate of contingencies is doubled, it increases by Rs.25.2 lakhs.
And hence the percentage increase in the total estimate is
25.2/725.5 ×100 = 3.47%.
ep
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This post was last modified on June 2, 2019 10:29 am