View the step-by-step solution to:

Instructions: 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm.

Instructions: Please complete all 3 multi-part problems for this week's assignment.

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
Sign up to view the entire interaction

Top Answer

Dear Student Please find... View the full answer

Economics-7599972.xls

Instructions: Please complete all 3 multi-part problems for this week's assignment.
2-1 Basic Estimating Problem
Your company is installing a new piece of machining equipment and a robotic arm....

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online