1. Calculate the direct cost of labor for a project team member using the following data:
Hourly rate: $50/hr
Hours needed: 120
Overhead rate: 40%
2. Calculate the direct and total direct costs of labor for a project team
member using the following data:
Hourly rate: $50/hr
Hours needed: 100
Overhead rate: 30%
3. The Munsters have been saving money in order to buy a house. They
figure that, given current interest rates, they could afford a $400,000
home. Before looking at houses on the market they decide to explore
the possibility of building a new home. The Munsters figure they
could buy a suitable lot for $70,000–$75,000. At a minimum they
want to build a 2,400-square-foot house. The cost for a house of the
quality they desire is $160 per square foot. Given this information,
should the Munsters pursue the option of building a new house?
4. Mrs. Publinsky and her husband, Xander, are planning their dream
house. The lot for the house sits high on a hill with a beautiful view
of the White Mountains. The plans show the size of the house to be
page 160
2,900 square feet. The average price for a lot and house similar to this
one has been $150 per square foot. Fortunately, Xander is a retired
plumber and feels he can save money by installing the plumbing
himself. Mrs. Publinsky feels she can take care of the interior
decorating. They both feel they can complete the exterior painting
with the help of their two sons.
The following average cost information is available from a local
bank that makes loans to local contractors and dispenses progress
payments to contractors when specific tasks are verified as complete.
25% Excavation and framing complete
8% Roof and fireplace complete
3% Wiring roughed in
6% Plumbing roughed in
5% Siding on
17% Windows, insulation, walks, plaster, and garage complete
9% Furnace installed
4% Plumbing fixtures installed
5% Exterior painting complete
4% Light fixtures installed, finish hardware installed
6% Carpet and trim installed
4% Interior decorating
4% Floors laid and finished
a. What is the estimated cost for the Publinskys’ house if
they use contractors to complete all of the house?
b. Estimate what the cost of the house would be if the Publinskys used
their talents to do some of the work themselves.
5. Exercise Figure 5.1 is a project WBS with cost apportioned by
percentages. If the total project cost is estimated to be $800,000, what
are the estimated costs for the following deliverables?
a. Design
b. Programming
c. In-house testing
What weaknesses are inherent in this estimating approach?
EXERCISE FIGURE 5.1
WBS Figure
6. Assume you are the project manager for the Tidal 2 software project.
You have been asked to calculate the expected cost for the project.
Your company’s database indicates that developers can handle eight
function points each person-month and that the cost per developer at
your firm is $5,000 per month. You and your team of five developers
have come up with the following requirements:
Elements Count Complexity
Inputs 10 Low
Outputs 4 Low
Inquiries 4 High
Files 28 Medium
Interfaces 18 High
Using the “complexity weighting” scheme shown in Table 5.2
and the information provided, calculate the total number of function
page 161
points, the estimated cost, and the estimated duration of the Tidal 2
project.
7. Omega 2 Project. Using the “complexity weighting”
scheme shown in Table 5.2 and the following function point
complexity weight table, estimate the total function point count.
Assume historical data suggest five function points equal one person
a month and six people have been assigned to work on the project.
Complexity Weight Table
Number of inputs 15 Rated complexity low
Number of outputs 20 Rated complexity average
Number of inquiries 10 Rated complexity average
Number of files 30 Rated complexity average
Number of interfaces 50 Rated complexity high
a. What is the estimated project duration?
b. If 20 people are available for the project, what is the estimated
project duration?
c. If the project must be completed in six months, how many people
will be needed for the project?
