A consumer electronics firm is planning an expansion into Milwaukee. Generally, the firm prefers to remodel large existing tenant spaces to suit their needs. After a site is selected from several alternatives, the corporate architect develops plans by reviewing the suitability of existing structure and utilities. A modification and demolition plan is then developed. Interior finish plans are then developed from corporate standards and adjusted to each site.

Building permits are handled by the general contractor (GC). The firm uses the GC for all of its construction in a region. The GC hires local subcontractors and provides on-site construction supervision.

As construction begins, the firm also begins to assemble a new management team from existing management staff, making an attempt to use only staff that has an interest in relocating. Sales staff is hired locally.

When construction is approximately six weeks from completion, inventory is ordered.

Prepare a work breakdown structure (WBS) for this project with activities corresponding to a two level task and sub-task hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified.

Given the following information, develop a base cost estimate by grouping costs by (Equipment/ Material) (items 1 -4), (Installation /Labor) (items 5 and 6). and (Overhead) 

1. Two pieces of equipment costing $ 15,000 and $ 35,000 

2. Material required for electrical hook-up is 400 feet at $ 25 per foot 

3. Controls for e 

4. Required start-up material is 3,700 pounds at $ 2.70 per pound 

5. Company labor for installation requires two maintenance specialists for two days at eight hours ach piece of equipment are estimated at $ 600 each per day and $ 35 per hour 

6. Contract labor is estimated at a fixed price of $ 7,500 

7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 

8. Inspection is estimated to be 3% of (labor) cost based on past experience 

9, General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor cost) based on past experience.