Kac Man-435 Writtenassign4

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Written assignment 4

Written Assignment 4 Kieth A. Coleman TESC#: 0553344 TESC – MAN-435 Project Management September 17, 2015

Review sections 8.1 and 8.2 of your textbook. Then do the following: 1. Calculate the direct cost of labor for a project team member using the following data:
Hourly rate: $35/hr.
Hours needed: 150
Overhead rate: 55%.
The hourly rate which for the team member which translates to about $72,800 per year gets multiplied by the hours needed to determine how much that employee costs for the project. The employee costs $35 times 150 hours for the course of the project for a total of $5,250. An overhead rate which allows for plant costs, employees pay benefits and any other costs incurred from the project is applied to the job at a rate 55% or a multiplier of 1.55 times the employee cost. Therefore, $5,250 gets multiplied by 1.55 to equal $8,137.50 for a total cost. Our book says, there are other ways people argue to break up the cost such as adding personal time which I believe is just that and a company should not be paying for that. (Pinto, 2013, p. 248) 2. Calculate the direct cost of labor for the project team using the following data. What are the costs for the individual project team members? What is the overall direct cost of labor?

Being that there are multiple people involved with this project, the company being charged probably wants to see a breakdown of each employees cost as well as a total. Sandy uses 60 hours with an overhead charge of 1.35, 1.12 personal time rate, at $18 per hour for a total of $1632.96 direct labor cost. Chuck uses 80 hours with an overhead charge of 1.75, 1.12 personal time rate, at $31 per hour for a total of $1860.80 direct labor cost. Bob uses 80 hours with an overhead charge of 1.35, no personal time rate, at $9 per hour for a total of $972.00 direct labor cost. Penny…...

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