Using the cost data below for a project the budget by month. Provide a total cost by category (labor, material, third party, travel, reserves), the total cost for each month, and a total cost for the entire project. Create an Excel spreadsheet, use formulas, and insert it in the word document in a way that the results are visible and the grader can click on the image, open Excel, and inspect the formulas if necessary.

• Project duration is 9 months.

• Software licensing for a total cost of $80,000 is required during month 3.

• System hardware installed on-site is estimated to cost the firm $240,000 including shipment to the firm’s location. The hardware must be unpacked, inspected, tested, and repacked at the firm’s location and then shipped to the customer site at a cost of $6,000.

• On-site hardware installation and testing will be subcontracted at a cost of $20,000. Installation should be done no earlier than month 6, require two weeks, and paid to the third party the month after it is completed.

• PM staff labor cost is $8,000 per month for the duration of the project.

• Refinement and confirmation of system requirements (stretched evenly over months 1 and 2) will require 160 hours at the rate of $110/hour, plus two customer site visits at a cost of $2000 per trip.

• Software development is expected to begin in month 2, span 5 months and require 3,000 hours of effort. The labor rate for the software developers is $130/hour.

• Software testing will be conducted by a third party in month 7 (some overlap with development is expected), takes 5 weeks and will be paid when completed. Cost charged by the third party is $40,000.

• On-site software installation and system testing (month 8) is expected to take three FTEs two full weeks each (5 workdays per week) including travel time. The labor rate for on-site installers/testers is $80/hour and travel costs for the team is $6,000.

• Training preparation (month 7) will require 100 hours at the rate of $100/hour.

• On-site training delivery (month 9) takes 40 hours at $100/hour. Travel costs will not exceed $2,000.

• Total project overhead, not including the PM staff labor cost, is an average of $10,000 per month.

• $20,000 has been set aside each of the last 3 months as a reserve. Include this figure in your budget.

• Hourly labor rates are fully burdened.

• Markup material costs and third-party fees by 20% in the cost baseline.