Professional Documents
Culture Documents
d). Global Green Book Publisher should set aside contingencies during budgeting
for Catering additional costs or unexpected costs during budgeting process.
When the budget exceed the estimates, more sources of cash should be sorted
or the budget should be reduced to fit the estimates.
e) Main cost drivers in the project;
Task
Receive
Check
Verify
Rate ($)
$12
$12
$16
Plan
Plan
Assign
Estimation
Reserve
equipment
Production
Manage
production
28
28
28
28
Hours
0.25
0.50
1
Total
1
1
1
0.5
Total ($)
$3
$6
$16
$25
$28
$28
$28
$14
Permission
Publishing
Content
conversion
Produce
Quality check
$22
18
12.5
Total
0
12.5
4
$98
$22
$225
$50
Tracking
$28
5
3
1
Total
3
$90
$48
$16
$429
$84
Total direct
cost
$636
18
16
16
Production overhead
Production overhead at $1.50 on all direct labour costs
Receiving labour cost $25*1.50 = $37.50
Planning labour cost $98 * 1.50 =$147
Production labour cost $429*1.50 = $643.50
Managing production labour cost $84*1.50 = $$126
Total production overhead =($37.50 + $147 + $643.50 $126) = $954
Indirect costs
Material costs of $1,000 per permission
Equipment costs of $800
Subcontract labour of $500