A company maintains a large network of water and wastewater equipment throughout a city. You are creating a maintenance budget for the coming year. Table 8. 27 shows the data available for the current year.

The direct working cost rate is $30/hour with a multiplier for on-costs and overheads of 2. 75. For next year, an increase in activity of 24% has been forecast for all equipment types. A contingency allowance of 15% is applied to the basic budget. What should the total maintenance budget be for the coming year?

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TABLE 8.27 Available Data of the Current Year for the Company Equipment Type Routine Working Hours Water mains 30,000 Wastewater mains 25,000 Pumps 28,000 Nonroutine Working Hours Spares and Consumables 10,000 12,000 15,000 195,000 185,000 205,000