A Project Manager (PM) wants to price out the cost for her project for the use of a piece of equipment. The company knows the piece of equipment is used by all projects combined an average of 31 hours per week. The company the PM works for actually rents the piece of equipment from a 3rd party provider at a cost of $32000 per month and spends $19000 per year on maintenance (the 3rd party provider doesn't pay for it). What would be the ABC cost for the use of the piece of equipment for the PM's project if the PM needs the equipment for 50 hours? Use 5 significant figures in your calculations. Your Answer:
A Project Manager (PM) wants to price out the cost for her project for the use of a piece of equipment. The company knows the piece of equipment is used by all projects combined an average of 31 hours per week. The company the PM works for actually rents the piece of equipment from a 3rd party provider at a cost of $32000 per month and spends $19000 per year on maintenance (the 3rd party provider doesn't pay for it). What would be the ABC cost for the use of the piece of equipment for the PM's project if the PM needs the equipment for 50 hours? Use 5 significant figures in your calculations. Your Answer:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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