Microsoft Office Tutorials and References
In Depth Information
When resources get paid per hour
Whether it’s minimum wage or the astronomical fees your lawyer charges
you every time you sneeze, most people get paid something per hour. To
represent most people involved in your project, you create work resources
and charge them to your project at an hourly rate.
After a resource has an hourly rate, when you then enter the estimate of how
many hours that person will work on each task that he’s assigned to, Project
totals his estimated costs in your plan. When you track actual effort expended
on tasks, a calculation of actual effort times the hourly rate returns actual
By comparing estimated costs and actual costs, you get an ongoing picture of
whether your project is on track.
To set resource rates per hour, follow these steps:
1. Display Resource Sheet view.
2. Click the Std. Rate column for the resource to which you want to
assign a cost.
3. Type a dollar amount.
If you’re entering a rate for a unit other than hours, type a slash ( ) and /
then the unit (for example, minute or month ).
4. Press Enter.
The entry is saved.
Note that you can also make cost-rate entries in the Resource Information
dialog box. The Costs tab of this dialog box, which is shown in Figure 8-2,
offers a Standard Rate, an Overtime Rate, and a Per Use Cost.
In addition, five tabs labeled A through E allow you to enter different rates
for the resource. By using the Effective Date column, a resource could work
for several months at one rate and then start working at a different rate on a
preset date. This helps you account for periodic raises or seasonal shifts in
rates (for example, paying a premium for construction resources in months
with better weather when they are more in demand).
If you use ten gallons at $2 per gallon . . .
This one might feel like a problem from your high school algebra class. ( So
many gallons of water in a bathtub with a leak. . . . ) Well, if you weren’t that
great at algebra, you’ll be glad to hear that there is a pretty straightforward
calculation Project makes to arrive at cost per use.