Antwan Maddox-PM592ON - Week 2 Assignment

Antwan Maddox-PM592ON - Week 2 Assignment - Week 2...

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Week 2 Assignment Antwan M. Maddox Amad410@gmail.com PM592ON – Project Cost and Schedule Control – Section B Professor Atwater November 6, 2011 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9). 1. Two pieces of equipment costing $ 15,000 and $ 35,000 2. Material required for electrical hook-up is 400 feet at $ 25 per foot 3. Controls for each piece of equipment are estimated at $ 600 each 4. Required start-up material is 3,700 pounds at $ 2.70 per pound 5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour 6. Contract labor is estimated at a fixed price of $ 7,500 7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 8. Inspection is estimated to be 3% of (labor) cost based on past experience 9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience. Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9. Charge Quantity Rate Cost Total Equipment Costs 2 $ 50,000.00 Equipment 1 1 $15,000 $15,000
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Equipment 2 1 $35,000 $35,000 Electrical Hookup (per ft.) 400ft $25.00 $10,000 $ 10,000.00 Controls piece (per equipment)
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This note was uploaded on 11/20/2011 for the course PM592 PM592 taught by Professor M during the Spring '11 term at Keller Graduate School of Management.

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Antwan Maddox-PM592ON - Week 2 Assignment - Week 2...

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