PROJECT MANAGEMENT QUESTION The gentleman farmer and surrealist aficionado commi
ID: 449066 • Letter: P
Question
PROJECT MANAGEMENT QUESTION
The gentleman farmer and surrealist aficionado commissioned a mural on a barn that was homage to San Salvado Dali's Persistence of Memory with a few farm animals included. The project would require the services of a senior muralist, junior muralist and a gofer.The senior muralist has an anual salary of $120,000, the junior muralist draws an anuals salary of $75,000 and the gofer makes $30,000 per year. It is anticipated that the project would take 25 hours of senor muralist time, 40 hours of junior muralist time and 60 hours of gofer time. Overhead charges vary by position; the gofer has a lower overhead rate (30%) than two muralist positions (50%).
Use 2080 as an estimate for the number of hours in a year and factor in 15% personal time. What is the total direct labour cost of the project?
Explanation / Answer
Total no of hours for which all three professional charge in a year are = Total hours - Persona Time off
= 2080 - 312 = 1768 hours
Senior muralist earn per hour = Total Annual Salary / No of working hours
= 120000 / 1768 = $ 67.87
Junior muralist earn per hour = Total Annual Salary / No of working hours
= 75000/1768 = $ 42.42
Gofer earn per hour = Total Annual Salary / No of working hours
= 30000/1768 = $ 16.96
Direct labor cost of project = Senior muralist cost + Junior muralist cost + Gofer cost
= 25*67.87 + 40* 42.42 + 60 * 16.96
= $ 4411.76
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