Join Bonnie Biafore for an in-depth discussion in this video Setting up costs for work and material resources, part of Microsoft® Project 2010 Essential Training.
- When you fill in cost fields for work and material resources, Project uses them to calculate project costs. And assignment's labor cost is the assigned work source's cost rate multiplied by the time they're assigned. For material resources, the cost is the rate multiplied by the assigned quantity. Well, let's head to the resource sheet and just look at the cost for different resources. On the View tab, I click Resource Sheet. We're gonna start with the Project Manager.
The Project Manager standard rate is $80 per hour. If you look at the standard rate for Office Manager that's not set yet. So, I'm gonna select that cell and type 60 and then press enter. And Project fills in $60 per hour. It turns out it doesn't always have to be by the hour. You can use a different time unit. For example, let's look at the web master and suppose you pay the web master $1,000 per month. You can type 1,000, put in a slash, and then MON for month and press enter.
Now, let's jump down to the appetizers material resource. The standard rate is $24. Well, that's $24 for a unit and the unit is Tray. So, $24 for each tray of appetizers. The one other thing is the Cost Per Use field. Now, what that means is every time you use a resource this cost would be applied. So, it's perfect for the appetizers. Let's say that the caterer has a $150 set up fee.
Well, that's so cost per use of $150 is perfect because when you assign the appetizers to a task, you'll pay for the number of trays that you're getting as well as the $150 set up fee. Well, let's take a look at how this works when you assign resources to a task. On the View tab, I'm gonna click the top half of the Gantt chart button to show the gantt chart. Now, I also wanna see the details pane in the task form, so, in the split view section turn on the Details check box.
Now, I'm gonna scroll down to the bottom of this project and find the open house task. And I click that in the gantt chart. The task form in the details pane shows me the information about the task and I can see the project manager is already assigned. At 100% the duration of one day, it equals 8 work hours. Well, now I wanna see the cost for this. I can show that in the task form. If I right click the Task Form and then choose Cost and that displays the cost table.
The cost for the project manager is $640 and that makes sense because it's 8 hours of work. The standard rate is $80 per hour. Now, let's add the Appetizers to this task. I click the next blank resource name cell, click the down arrow and choose Appetizers. The next thing is to click the Unit cell. I'm not putting in a percentage. I'm gonna put a quantity of 30 and then click OK. The cost comes out to be $870.
Well, that's 30 times $24. That's $720 plus the $150 set up fee. Let's go back to the Resource Sheet and just wrap up with a few more fields related to costs per resources. The first one is the over time rate field. Now, over time rate only applies to work resources because they get paid over time, at least sometimes. It turns out in Project, the only time you need the overtime rate is one, if someone gets paid extra for overtime hours, and you actually assign the overtime hours in Project.
For example, let's say that the project manager works overtime but gets paid the same $80 per hour. You don't need to use the overtime rate field for that. Another field to look at is the Accrue field. Now, it's set to pro-rated by default and that means that the cost is spread over the task duration, and that's usually fine, but let's scroll down and take a look at airfare. Typically, you pay for airfare upfront. In that case, you click the Accrue cell, click the down arrow, and choose Start.
Similarly, if you were gonna pay a consultant for work after the fact, you could choose End instead. Well, now you know how Project handles costs for work and material resources. Cost resources work differently as you'll see in another movie.
- Setting up projects and calendars
- Creating tasks and milestones
- Linking and timing tasks
- Setting up and assigning resources
- Understanding duration, work, and units
- Filtering and grouping items with views
- Adding tasks to a baseline
- Updating progress and costs
- Viewing project status
- Running reports
- Importing and exporting projects
Skill Level Beginner
1. Working with Project
2. Setting Up Project Files
3. Creating Tasks
4. Linking and Timing tasks
5. Creating Resources
6. Assigning Tasks to Resources
7. Working with Views
8. Fine-Tuning the Project Schedule
9. Tracking and Managing a Project
10. Viewing and Reporting Project Information
11. Sharing Projects
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.