The Denver Iron & Steel Company is expanding its operations to include a new drive-in weigh station. The weigh station will be a heated/air-conditioned building with a large floor and small office. The large room will have the scales, a 15-foot counter, and several display cases for its equipment. Price of scales: 5000$, cost of the counter: 500$, Inverter AC :600$, labour cost: 15 $/hr, Overhead cost: 40% total labour cost, Benefits for labour: 4% of labour cost, Total Labour hours:220 hrs, Work stoppages: 10% of total hours Question: Using work element costing calculate the budget of this project, and create a WBS and responsibility chart for the project.
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
The Denver Iron & Steel Company is expanding its operations to include a new drive-in weigh station. The weigh station will be a heated/air-conditioned building with a large floor and small office. The large room will have the scales, a 15-foot counter, and several display cases for its equipment.
Price of scales: 5000$, cost of the counter: 500$, Inverter AC :600$, labour cost: 15 $/hr, Overhead cost: 40% total labour cost, Benefits for labour: 4% of labour cost, Total Labour hours:220 hrs, Work stoppages: 10% of total hours
Question: Using work element costing calculate the budget of this project, and create a WBS and responsibility chart for the project.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
