Indirect cost- General and administrative

The company assigns General and administrative expenses as at a rate of 7% of total direct cost to all projects over the course of the project.

Assumptions when preparing the time phased project budget:

1. You may assume 5 work days per week and 8 work hours per day.

2. you may assume that the cost incurred per activity(direct or indirect) is incurred equally over the period of the activity. for example, if a cost of R100.00 is planned for an activity that spans over 2 weeks, the cost will be shown as R 50.00 in week 1 and R 50.00 in week 2.

You are required to:

Based on the information above, compile a weekly time phased budget( cost and income) for the project.

ADDITIONAL INFORMATION ON ACTIVITIES: You are the project manager at a company that was contracted to build an extra class room at a local school. The project will be completed through 5 activities (Activity A - Activity E) Activity A requires the following: over the course of 6 weeks. The fee charged to the customer is R300 000 and will be Thirty (30) hours Grade 1 labour in total for the activity; The builders on the project have provided the following information to assist you in compiling - Rental of specialised equipment amounting to R4 200 for use only in this activity. a time phased project budget. Activity B requires the following: \begin{tabular}{|l|l|l|l|l|l|l|l|l|l|l|l|l|l|} \hline \end{tabular} - Ten (10) hours Grade 2 labour in total for the activity. - One hundred and twenty - The following materials 800kg of cement; Labour rates: - A sub-contractor will be responsible for activity E at a committed cost of R18 000 . One Grade 1 labourer will be required on site for 2 hours per day for activity E. INDIRECT COST - PROJECT OVERHEADS: In addition to the direct cost described per activity, the following indirect cost will be incurred for this project as a whole: - Fuel and other travel cost R15 400 - Rental of machinery. R12 000 - General material: R5 682.50 The builder will make use of workers in 3 labour grades, the most experienced labourers project overheads are assigned over the course of the project proportionately to total direct (Grade 1) is paid an hourly rate equivalent to R480 per day. The labourers in Grade 2 is paid R45 per hour and Grade 3 labourers are remunerated at R40 per hour