Material cost variance and fixed overhead spending variance

BSB51415 Diploma in Project

Questioning Assessment
Candidate Instructions
It is anticipated that the assessment will take approximately 6 hoursto complete. The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-submission” on your resubmitted work. Answer the activity in as much detail as possible, considering your organizational requirements. In undertaking this assessment task, you as the candidate are providing consent for your work to be reviewed for the purposes of formal assessment in the unit(s) of competency. If you have concern regarding this permission, please discuss this with your assessor prior to undertaking the task.

Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au

Date:

Candidate signature:	Rodrigo Gutierrez O’Farrell

General instructions
You need to complete this task based on IndoAust Jaya Case Study and corresponding Project Brief.

Part A – Resource requirements and costs
Outline the resources required for a phase of your project and the relevant costs using the Project resource requirement and cost sheet given below to guide you.

info@ihBC.edu.au| www.ihBC.edu.au

		Material			$5,00 0	All the material gets depreciate d over time
			$95,0 00	Electricity, rent and utilities

Refer to Section 8 of the Project Brief and the IAJ Salary Structure found in Canvas under ‘Additional Resources’ to help you find the information required. This section should be no more than 200 words.

Part B – Budget
Based on the resource requirements and costs, prepare a budget for a particular phase of a project. You must create your budget electronically and submit it as an electronic file. You may use any project management software that you have available. If you do not have access to project management software, do an internet search for Excel templates and choose one that suits your project.

Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022

3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000

Part C – Cost Management Plan

Refer to Section 6 in the Project Brief to help you identify accountabilities. You will also need to refer to the budget you have developed and standard workplace practices.

This section should be no more than 400 words.


Customisations (variable)	$ -	$ -	$ 26,875	$ 26,875	$ 26,875	$ 26,875	$ 107,500
Hardware and Peripherals (variable)	$ -	$ -	$ 35,000	$ 35,000			$ 70,000

5. Reports:

The reports will show the purchase price variance, labour rate variance, material cost variance and fixed overhead spending variance. These reports will be performed on a frequency of 2 months.

Finance Manager: Are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.

Process Owner:Are responsible for the management of processes within the organization. They are the people who receive the solutions created by an improvement team, and end up being responsible for managing the improved process

- It is evaluated according to the order pre set.

- Priority
- Define which area is more affected (scope, cost, time, etc)- Assigning status (Open, work in progress, in review, testing)

 explain key aspects of your budget and financial plan
Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000 info@ihBC.edu.au| www.ihBC.edu.au

 supporting IAJ staff

 planning and coordinating infrastructure

 troubleshooting system and network problems and diagnosing and solving

hardware/software faults

a) Prepare an email that you will send to Gary. The purpose of your email is as follows:

 Provide a summary of the key aspects of your budget and financial plan in the

 Arrange a meeting to discuss further and gain agreement

Use the following email template. (200 words)

3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000

info@ihBC.edu.au| www.ihBC.edu.au

The way I will respond to his comments, questions and concerns is going to be with a completely open mind, trying to encourage him to be open and completely honest with me.

Part E – Calculations

Using the cost provided in the section 8 of the project, assuming that all the activities start and finish at the same time with no difference in the “one time cost” and “Annual Cost”(because of the lack of gantt diagram) I came with the following solution:

Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au

Part F – Budget report

Prepare a budget report for a project that is in progress.

info@ihBC.edu.au| www.ihBC.edu.au

Item	$
	7,600
	62,000
	5,000
	3,000
Selection Processes	7,000
Additional Software	2,000
	74,000
	85,000

Annual Maintenance and Service Charges	22,000

Use the below given Budget report template to prepare your report. This section should be no more than 200 words.

RTO Code: 91109 CRICOS 02623G

Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022

Use the given below Lessons Learned Report to document your review.

This section should be approximately 400 words.

	Lesson learned	What worked		What didn’t
	Lesson learned	What worked	Lesson learned	What didn’t
area	that worked	well	that didn’t	work well
Budget	Financial	recommendation	work	recommendation
	Financial		Some meeting
			Some meeting
		allowed us to	lost focus	discussing these
				issues personally,
	disappear as you			issues personally,
	disappear as you		deep about	we use the
	prioritize savings		deep about	we use the
	prioritize savings
	(margin) in your		budgeting	meetings to
			budgeting	meetings to

		We incorporated		unnecessary
	prioritization of	We incorporated		details
		the prioritization
		in the standards
	worked well as it
	helped us to	budgeting and
		budgeting and

	emergencies.
	emergencies.	management

Business College at International House

	well to anticipate and accommodate major expenses
	The planification and control of the budget worked well as it improved the communication in the project	Being focus on the budget allowed us to maintain the close communication and weekly meeting in relation to that.		The software was not simple to use and make changes. Something that happen all the time in this kind of projects.

 This completed workbook

Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au