Project Costing wk4TeamB

Topics: Project management, Cost accounting, Marginal cost Pages: 6 (1051 words) Published: April 20, 2015


Project Costing
Juan Avila, Joseph Richard, Marlon Morales, Kristopher Mellinger, Nicholas Offutt CMGT 410
April 13, 2015
Patricia Anderson

Cost Allocating
Project Name: New Horizons
Scope: Procuring and installing hardware
Allocation of resources to project tasks (both labor and material) To ensure a project remains within the boundaries of its allocated budget, it is imperative to follow a plan that reflects an achievable goal. Organization in this case is paramount to promote accurate spending as the project progresses through its milestones. The total budget for New Horizons has been set at $500,000.00 and has been divided into labor and materials. The following list identifies key personnel as well as the necessary materials to initiate the project. A flexible mindset must remain in order to adapt to future project demands. The Gantt chart will identify how the personnel, who will expend labor hours, will utilize the material to accomplish individual and team tasks. Total project budget / $500,000.00

Labor
Programmer
Hardware installer
Purchasing agent
Customer support representative
Materials
Server
Software
Hardware installation tool kit
Tablet
Laptop
Docking station
Monitors
Smartphone

Human Resource
Material
Cost each
Qty
Programmer
 
 
 
$200.00
Server
$35,000.00
1
per hour
Software
$5,000.00
1
 
Laptop
$1,500.00
1
 
Docking Station
$450.00
1
 
Monitor
$300.00
2
 
Smartphone
$500.00
1
Hardware Installer
 
 
 
$100.00
Tablet
$1,000.00
1
Per hour
Software
$5,000.00
1
 
Hardware instal tool kit
$2,500.00
1
 
Smartphone
$500.00
1
Purchasing agent
 
 
 
$150.00
Laptop
$1,500.00
1
per hour
Docking Station
$450.00
1
 
Monitor
$300.00
2
 
Smartphone
$500.00
1
Customer support rep
 
 
 
$100.00
Laptop
$1,500.00
1
per hour
Docking Station
$450.00
1
 
Software
$5,000.00
1
 
Monitor
$300.00
2
 
Smartphone
$500.00
1

Cost estimates for project resources
Cost estimates are the one that could have a high risk over the project and it is the one that establishes the base line of the project cost at different stages of development of the project. Managers should know or research the multiple tools or techniques (Expert Judgment, Bottom-Up Estimating, Vendor Bid Analysis, and Three-point Estimates) that should be use to accomplish this task. The project team should estimate cost for all resources that will be consider for this project like IT equipment, Hardware installation, Purchasing agent, and customer support rep. The cost of a project could depend on the type, size, location, and people that needs to take over it.

We should have the production function as relationship between the output of a process and the main resources. Empirical cost inference requires statistical techniques, which relate the cost of operating a facility to better standards and use of the system. Unit cost for bill is the summation of the equipment, labor, purchasing agent, hardware installation, and customer rep. The unit cost should assign to each and then the total cost is determined by summing the costs for each activity. Allocation of joint costs can be possible from existing accounts may be used to develop a cost function of another operation. Resources

The resources for the project are detailed earlier in this document. There are no particularly outstanding facts about them beyond what has been given. Task Sequencing
First and foremost is procuring the hardware, which entails comparing available hardware choices to the budget for that system and the requirements it needs to meet, actually purchasing the hardware and delivery to the location of the installation. Estimated Shopping Time: One Week

Estimated Delivery Time: Varies but One Week is considered likely Once the hardware arrives the next step is installation and testing. In a perfect world this would only take...
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