For most construction projects, Bradley Heating and Cooling

For most construction projects, Bradley Heating and Cooling buys… For most construction projects, Bradley Heating and Cooling buys sheet metal and forms the metal into heating/cooling ducts as needed. The company estimates the costs of making and installing ductwork for Kerry Park shopping mall to be as follows:            Materials    $                     35,000      Labor to form ductwork                            4,000      Labor to install ductwork                          10,000      Misc. variable costs                             1,500      Fixed costs allocated based on labor hours                           3,000      Total costs    $                     53,500              The fixed costs relate to the company’s building equipment,and office staff. Expected billings and other costs pertaining to Kerry Park are:  Projected billing of Kerry Park for services $                     68,000              Bradley is currently behind schedule on other projects which incurs costs as follows. The penalty is a variable cost.   Late penalty    $                       6,000              Walt Bradley, the owner of Bradley Heating and Cooling, is considering ordering prefabricated ductwork for the Kerry Park job, which includes the cost of sheet metal. The following cost is expected:   Prefabricated ductwork cost   $                     42,000              If Walt buys the prefabricated ductwork, he’ll be able to reassign labor ductwork workers to another project and avoid  late fees.  If Walt buys the pre-fabricated ductwork, workers will still install the ductwork and incurr miscellaneous variable costs for the Kerry Park Job. Required        Complete the schedule to determine if Bradley   should make the ductwork or buy it prefabricated? Enter a 0 for any cells in G or H without a number.                Buy Prefabricated Make the productDifference (G-H)         Materials  $                42,000.00  $              35,000.00  $             7,000.00   Labor to form ductwork 0 $                4,000.00  $            (4,000.00)  Labor to install ductwork  $                10,000.00  $              10,000.00 0  Miscellaneous variable costs 0 $                1,500.00  $            (1,500.00)  Fixed costs allocated based on labor hours  $                68,000.00  $                3,000.00  $           65,000.00   Penalty 0 $                6,000.00  $            (6,000.00)  Total cost      $                   120,000  $                   59,500  $           60,500.00  Explain if Bradley should make the ductwork or buy it prefabricated. Does buying the fabriated ductwork save costs or increase costs?Accounting Business Financial Accounting ACCT 2301

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