{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

PM592_W2_Assignment_Key

# PM592_W2_Assignment_Key - PM592 Week 2 Assignment Problems...

This preview shows pages 1–2. Sign up to view the full content.

PM592 – Week 2 Assignment Problems Answer Key Instructors: Both questions and answers have been provided to assist you with the grading process. The correct answers can be found in blue text. 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. Check answer: Total project cost = \$94,737.60 Equipment and Material Two pieces of equipment \$50,000.00 (15,000 + 35,000) Material for electrical hook up 10,000.00 (400 x 25) Controls for each equipment 1,200.00 (600 x 2) Required start-up Mat. 9,990.00 (3,700 x 2.7) \$71,190.00 Installation and Labor 2 Maintenance specialists \$1,120.00 (35 x 16 x 2) Contract Labor 7,500.00 (Given) \$ 8,620.00 Misc.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 5

PM592_W2_Assignment_Key - PM592 Week 2 Assignment Problems...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online