Reference no: EM131392986
Bottom-Up Method
For the budgeting of The Drip the top-down estimating method was used. We chose this method due it the similarities it has with a past project that we have done. This allowed us to tap into knowledge that we already had regarding specific parameters of those projects. We felt this was the best approach for a conceptual estimate in the early-stage of the project.
Original Vs. Actual Budgeted Costs
Labor Variations: Due tolabor cost, in order for us to stay within budget, it is best to hire part time associates at minimum wage. No overtime will be given; only 30 hours per week. Only one manager will be needed to start to help with coffee shop duties with 40 hours a week given. Tutors for the community center will also be part time. The original budget was $200,000.00 and remained the same.
Material Variations: The material costs were overestimated in the original budget by $10,000.00. We shopped around for materials and were able to find deals on items as well as our contractors providing ideas which allowed us to save money in this category. It remained the same.
Contractor Variations:The contractor cost was underestimated. They were key things that were not included in the estimation at the beginning that are part of the contractor budget. Those items include plumbing, flooring, electrical and venting system. These were items we were unaware of as a building had not been secured at the time the original budget was done. Original budget was $70,000.00, which remained the same.
Equipment & Facilities Variations:The overall equipment and facilities cost came to a total of $140,000.00. The amounts are for the coffee makers, POS system, computers, legal expenses, phone, etc. The original budget was $150,000.00 resulting in a savings.
Travel Variations:The original budget set in place for the travel expenses was $10,000.00. The actual budget cost came out to $6,000.00. This included basic company travel expenses and advertising. This change was due to in-person meeting not being needed at the current time, but allows for them to take place as the completion of the project nears.
Contingency Plan
Our budget contingency plan is using cutbacks and leaving extra in the budget for any unexpected circumstance that may happen. This includes travel expenses, materials, labor and equipment. In order of our business to be successful we need to make the most of our budget. The savings will serve as a cushion to our budgeted costs. The Drip's contingency budget will include $10,000.00
|
The Drip Budget
|
Original Budgeted Cost
|
Actual Budgeted Cost
|
|
Labor
|
$200,000.00
|
$200,000.00
|
|
Materials
|
$50,000.00
|
$50,000.00
|
|
Contractors
|
$70,000.00
|
$70,000.00
|
|
Equipment and Facilities
|
$150,000.00
|
$140,000.00
|
|
Travel
|
$10,000.00
|
$6,000.00
|
|
Total
|
$480,000.00
|
$466,000.00
|
Attachment:- fill_the_cup_2.rar
|
What are the features of monopolies
: In a short paragraph, what were the Fed’s goals in implementing Quantitative Easing and Operation Twist? What are the short and long term consequences of these monetary programs ? What are the features of monopolies? Are monopolies always large firms..
|
|
What issues are associated with intimate partner abuse
: What issues are associated with intimate partner abuse? How have these issues changed in recent times?What role does the criminal justice system play in protecting abuse toward intimate partners?Why do you believe elder abuse exists? Explain the exte..
|
|
Explain background information on the chosen organization
: Provide background information on the chosen organization. Description of the diverse literature available on varied research methods.
|
|
Aggregate concentration is concept that applies
: To decrease the money supply, the Fed can. What is the Herfindal index industry in which one firm has a 20 percent share of the market and eight other firms each have a 10 percent share? Aggregate concentration is a concept that applies to _____.
|
|
Estimate in the early-stage of the project
: This allowed us to tap into knowledge that we already had regarding specific parameters of those projects. We felt this was the best approach for a conceptual estimate in the early-stage of the project.
|
|
Analyze starbucks method of debt financing
: In other words, what are this company's methods for accounting for receivables and evaluating uncollectible receivables?What types of fixed assets are acquired, and what methods are preferred for debt financing?How do those affect how financial infor..
|
|
High and unexpected inflation has a greater cost
: High and unexpected inflation has a greater cost. If a bank uses $500 of excess reserves to make a new loan when the reserve ratio is 8 percent, this action by itself initially makes the money supply.
|
|
Describe your own observances of the sacred
: RELS 3345:Is thinking about the sacred a useful method for understanding our own existence? Why or why not? Describe your own observances of the sacred or those of your family or close friends.Read Chapter Three"The Appearance of the Sacred"in The S..
|
|
Show a flowchart of computer controller action
: If the error is available as percent of span, develop the control equations and show a flowchart of computer controller action with all constants evaluated. The sample time is 0.8 mins.
|