Unit 4 assessment
Question 1 What is the difference between direct and
indirect costs? What is the difference between fixed and variable costs?
Define, compare, and contrast each within the context of a project.
Your response should be at least 75 words in length.
Question 2 Calculate the direct cost of labor for the
project team using the following data. What are the costs for the individual
project team members? What is the overall direct cost of labor?
Your response should be at least 75 words in length.
Name Hours
Needed
Overhead Charge Personal Time Rate Hourly Rate
Total Direct Labor Cost
Johnathan 40 1.25 1.12
15/hr
Susan 100 1.75 1.12
21/hr
Debra 80 1.35 0 11/hr
Bobby 55 1.8 1.13
44/hr
Question 3 Bottom-up project budgets are said to provide
more detail and, as a result, be more accurate; therefore, why are top-down
budgets used in projects? When, if at all, would you recommend using such an
approach?
Your response should be at least 75 words in length.
Question 4 Calculate the direct cost of labor for a project
team member using the following data: hourly rate: $75/hour; hours needed: 180;
and overhead rate: 45%
Your response should be at least 75 words in length.
Question 5 Calculate the direct cost of labor for the
project team using the following data. What are the costs for the individual
project team members? What is the overall direct cost of labor?
Your response should be at least 75 words in length.
Name Hours
Needed
Overhead Charge Personal Time Rate Hourly Rate
Total Direct Labor Cost
Jonathan 60 1.35 1.12
17/hr
Susan 120 1.8 1.12
31/hr
Debra 40 1.35 0 9/hr
Bobby 65 1.8 1.13
34/hr
