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About Cost Calculation in RiskyProject
The example below illustrates how fixed and variable (resource) costs are calculated with respect to tasks and subtasks:
The project schedule includes the summary task “Web Site Design”, the summary task “Art Works”, and subtasks “Selection of art work” (2 days duration) and “Purchase of art work” (0.2 days duration). “Selection of art work…” has base fixed cost $200 and is assigned to the Graphic Artist with rate $50.00/hour. “Purchase of art work” has a base fixed cost of $400 and is done by Purchaser with rate $40.00/hour. The work is supervised by project manager with rate $80.00/hour, but is only 10% his time is assigned to this project. It is assumed that a day has eight (8) working hours.
The Fixed cost for the summary task is calculated as sum cost of all subtasks, which do not have subtasks themselves. Resource cost for summary tasks is calculated as cost of all resources assigned to summary task plus resource cost of all subtasks.
A. Calculation of base fixed cost for summary task “Web Site Design”:
Base fixed cost for “Selection of art work…” (Task 3) = $200.00
Base fixed cost for “Purchase of art work” (Task 4) = $400.00
Total = $600.00
B. Calculation of variable (resource) cost for summary task “Web Site Design”:
Resource cost for project manager:= 17.6 hours * $80/hr / 10 = $140.8
Resource cost for Selection of art work (Task 3) 16 hours * $50/hr $800
Resource cost for Purchase of art work (Task 4)= 1.6 hours * 40/hr $64
Total = $1004.8
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