The Academy Awards offer a chance for Hollywood to show off its glitz, glam and gold. From courting voters to hiring red carpet, the Academy Awards are big business. To even get to the Oscars, it costs a lot: Hollywood spends $100 million on awards-season lobbying each year.

Although the pandemic hit Hollywood hard, with revenue down nearly 60% compared to pre-COVID pandemic levels, according to WalletHub, people can still look forward to certain things to stay the same: the red carpet, the awards and of course, the films.

To attend the Oscar party can cost around $80,000 per couple, and A-list actors can expect to pay an average of $10 million on their outfits: although this number varies from $1.5 million for the average attendee's ensemble to $266,000 for a first timer. For Los Angeles, the Oscars are an economic boon: $130 million is the annual revenue the city gets from the awards ceremony. ABC gets $120 million in ad revenue from the awards show and $21 million is generated from the Red-Carpet show. It's not just the city or television network that benefits from the awards: the best actor/actress winner can expect a 60% boost in pay.

Seneca college has been invited to prepare an initial budget for the Oscar Grand Gala and your Group has been designated to undertake this.

You can refer to the links given here for preparing the WBS and you can also refer to other documents in the public domain.

https://www.theguardian.com/film/2017/feb/25/oscars-2017-how-much-does-hollywood-biggest-party-cost-earn

https://www.newsnationnow.com/entertainment-news/how-much-is-the-oscars-costing-this-year/

https://fox4kc.com/news/how-much-is-the-oscars-costing-this-year/

Assignment NOTES

Your team put together the Work Breakdown Structure (WBS) for this project and get the same approved by the Business Sponsor. This signals the approval of your project's scope. Now it's time to determine how much it will cost to deliver this project's scope. In other words, we are building the project's budget.

1. Your first step is to create the structure of your budget. Please use Microsoft Excel and the WBS provided in the Table 1 below

2. Your second step is to estimate the labour and non-labour costs.

Estimating labour costs requires you to estimate how long the work will take (durations) and how much you will pay the people performing the work. Use the duration estimates provided in Table 1 below.

As a group, determine the hourly rates for the human resources required.

With respect to the non-labour costs of this project, consider the equipment and materials required to complete the project. Ensure you document your assumptions clearly. This includes a description of what the cost represents and how you determine the dollar amounts.

3. Your third step is to create the total budget

This requires you to sum up the costs of each major deliverable. Create subtotals at the major deliverable level. Create subtotals for the labour and non-labour costs as well. Use formulas whenever possible so you fully harness the power of Microsoft Excel.

Establish a reasonable contingency for this project.You are free to make any assumptions you like; simply ensure they are well documented.

4. Your final step is to create the time-phased budget.

As discussed in class, the objective of the time-phased budget is to determine the cash flow needs of the project. To create a time-phased budget, you need to consider when the work will be done.Refer to Table 1 below for guidance.

With respect to contingencies, it is acceptable to include them at the beginning of the project, end of the project or spread them out over the project's duration. As a team, decide which approach you feel is most appropriate. Lastly, ensure your time-phased budget has the same total cost as your aggregate budget.

Deliverables for this Assignment:

As part of this Assignment, you will submit four deliverables:

1. Developed WBS

2. Assumptions Document - The documents should clearly list out the assumptions you have made for:

a. Total Budget

b. Time Phased Budget

c. Level of Contingency considered.

3. Total Budget: This is aggregated costs of components/sub-components. Your total budget is the aggregate of all your WBS categories.

4. Time-phased budget: Create your time-phased budget on a monthly, quarterly, or half years basis

Additional Assignment Notes:

1. Please submit your Microsoft Excel file (not a PDF version) as I will be reviewing the calculations made. One member of your team will submit your completed assignment on blackboard.
2. You must use MS Teams as your online collaboration tool.
3. Confidential Peer Evaluations are also required. Please note to submit the Peer Evaluation.

TABLE 1

Costing the Oscars
WBS #	Deliverable /Work Package	Duration (Days)
1	The Campaign
1.1	PR Consulting	5
1.2	Advertising	12
1.3	TV Commercials	21
1.4	Talent Costs	11
1.5	Film Screenings	3
1.6	Digital Screenings	1
2	The Show
2.1	Producers Briefing	14
2.2	Hosts Briefing	2
2.3	Dolby Theatre Booking	7
2.4	Oscar statuettes	2
2.5	Security	5
2.6	Red Carpet	1
3	Black-Tie Dinner
3.1	Main Course	5
3.2	Dessert	2
3.3	Drinks	2

RUBRICS

Criterion	Levels Achieved
Grading 1-3	1 point	2 points	3 points	TOTAL
Structural consistency with the Work Breakdown Structure (WBS)	Budget is not consistent with the structure provided.	Budget is somewhat consistent with the structure provided.	Budget is completely consistent with the structure provided.	3
Work packages estimates.	None/few of the work package duration estimates were used.	Someof the work package duration estimates were used.	Majority/all of the work package duration estimates were used.	3
Aggregate budget completed	Aggregate budget provided but most deliverables do not have subtotals. Contingencies were not included.	Aggregate budget provided and some deliverableshave subtotals. Contingencies were included.	Aggregate budget provided and all deliverables have totals. Contingencies were included.	3
Time-phased budget completed	Time-phased budget was not provided.	Time-phased budget was provided but it does not have the same total as the aggregate budget.	Time-phased budget was provided and it has the same total as the aggregate budget.	3
Assumptions are well documented	Fewassumptions provided	Someassumptions provided	Most/allassumptions provided	3
Accuracy of calculations	Many mathematical mistakes made (3 or more)	Somemathematical mistakes made (1 -2)	Allcalculations are correct.	3