You are a new project manager who joined the company Ultra Safe recently. The company is currently reviewing the different methods used for estimating schedule, cost and resource since the company is concern with the quality and accuracy of estimation. You have been provided the following information to create a budget for designing and producing Ultra Safe brochure using Excel spreadsheet.

The following are some assumptions about the project and the budget that you made.

You estimated that as the project manager you will spend 200 person-hours on the project and a teammate (Maryam) will spend 100 person-hours.

Rate for the project manager is $45/hour and Maryam is $25/hour

Stationery to copy the brochures estimated cost is $1000

Travel cost to visit vendors and suppliers is $300

Graphic designer fees to create the artwork for the brochure is $5000

Ultra Safe has developed a combined indirect cost rate of 60% of direct salary

1. Explain how you will determine the direct cost, indirect cost and total cost.

2. Assuming that you received information that the cost of stationery increased by 10% and the graphic designers fee increased by 25%. Include the variances and total variance in the report.

3. According to Maryam the best budgets are timed-phased, however, she suggested that in budgeting, the project manager must focus on the different phases of the project such as:

Scope documentation

Project Planning

Design

Development (Buying Materials)

Prototype (drafts)

Prototype (Review)

Production

Based on Maryams views about creating a budget that focuses on the different phases of project or timed-phased budget; what advice do you have for the project manager and project team?

Please provide the calculation and the explanation for all 3 questions