Exercises 1. Calculate the direct cost of labor for a project team member using the following data: Hourly rate: $50/hr Hours needed: 120 Overhead rate: 40% 2. Calculate the direct and total direct costs of labor for a project team member using the following data: Hourly rate: $50/hr Hours needed: 100 Overhead rate: 30% 3. The Munsters have been saving money in order to buy a house. They figure that, given current interest rates, they could afford a $400,000 home. Before looking at houses on the market they decide to explore the possibility of building a new home. The Munsters figure they could buy a suitable lot for $70,000-$75,000. At a minimum they want to build a 2,400-square-foot house. The cost for a house of the quality they desire is $160 per square foot. Given this information, should the Munsters pursue the option of building a new house? 4. Mrs. Publinsky and her husband, Xander, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the White Mountains. The plans show the size of the house to be 2,900 square feet. The average price for a lot and house similar to this one has been $150 per square foot. Fortunately, Xander is a retired plumber and feels he can save money by installing the plumbing himself. Mrs. Publinsky feels she can take care of the interior decorating. They both feel they can complete the exterior painting with the help of their two sons. The following average cost information is available from a local bank that makes loans to local contractors and dispenses progress payments to contractors when specific tasks are verified as complete. 25% Excavation and framing complete 8%% Roof and fireplace complete 3%% Wiring roughed in 6% Plumbing roughed in 5% Siding on17% Windows, insulation, walks, plaster, and garage complete 9% Furnace installed 4% Plumbing fixtures installed 5% Exterior painting complete 4% Light fixtures installed, finish hardware installed 6% Carpet and trim installed 4% Interior decorating 4% Floors laid and finished . What is the estimated cost for the Publinskys' house if they use contractors _page 160 to complete all of the house? b. Estimate what the cost of the house would be if the Publinskys used their talents to do some of the work themselves. 5. Exercise Figure 5.1 is a project WBS with cost apportioned by percentages. If the total project cost is estimated to be $800,000, what are the estimated costs for the following deliverables? a. Design b. Programming c. In-house testing What weaknesses are inherent in this estimating approach? EXERCISE FIGURE 5.1 WBS Figure Router systems project Cost: SHOO OOD Definition Design Implementation 10% Objectives Requirements In-house Customer testing 4%% testing & review 40% Inputs Outputs Files Interfaces Programming 35 2216 6. Assume you are the project manager for the Tidal 2 software project. You have been asked to calculate the expected cost for the project. Your company's database indicatesthat developers can handle eight function points each person-month and that the cost per developer at your firm is $5,000 per month. You and your team of five developers have come up with the following requirements: Elements Count Complexity Inputs 10 Low Outputs 4 Low Inquiries 4 High Files 28 Medium Interfaces 18 High Using the "complexity weighting" scheme shown in Table 5.2 and the information provided, calculate the total number of function points, the estimated cost, and the estimated duration of the Tidal 2 project. 7. Omega 2 Project. Using the "complexity weighting" scheme shown in Table _page 161 5.2 and the following function point complexity weight table, estimate the total function point count. Assume historical data suggest five function points equal one person a month and six people have been assigned to work on the project. Complexity Weight Table Number of inputs 15 Rated complexity low Number of outputs 20 Rated complexity average Number of inquiries 10 Rated complexity average Number of files 30 Rated complexity average Number of interfaces 50 Rated complexity high a. What is the estimated project duration? b. If 20 people are available for the project, what is the estimated project duration? c. If the project must be completed in six months, how many people will be needed for the project