PROJECT BUDGET PLAN

(Laptop Bag)

This paper analyzes resource allocation for the endorsed project output,
including project budgeting and activity cost estimation, to ensure effective execution
within budget constraints. It further justifies the required budget and outlines how the
funds will be utilized while enabling easy monitoring and ensuring that sufficient revenue
is available, overruns are avoided, profitability and margins are high, and fellow
constituents adhere to cost control strategies. Thus, the project team will utilize a
systematic approach to evaluate the current situation and establish a comprehensive
framework for data collection on actual expenses. This involves creating standardized
processes, methods, and forms for materials, equipment, labor, and travel expenses,
which will then be outlined as follows.

PROJECT BUDGET ANALYSIS

This section outlines the budget plan in depth and identifies who, when, and
where each cost will be incurred. This seeks to coordinate spending and keep costs
under control.

A. Estimated Activity Cost for Laptop Bag

Activity Liable Duration (dd) Labor Rate Labor Cost Materials Cost Travel Costs Equipment Cost Contingency Total Costs
1  Product Sketching  Larayos  1 420 420 0 0 0 0 420
2  Gathering of Materials  Taneo J.  52 400 20800 312 0 0 100 21212
3  Trimming of Materials  Larayos  2 410 820 0 0 0 0 820
4  Sanitizing of Materials  Federicos  2 418 836 0 0 0 0 836
5  Drying of Materials  Federicos  2 418 836 0 0 0 0 836
6  Pattern Marking  Manalang  2 415 830 0 0 0 0 830
7  Cutting Parts Bundling  Amahan  2 420 840 0 0 0 0 840
8  Layouting of Plastic Strips  Taneo J.  2 400 800 0 0 0 0 800
9  Initial Sewing  Macasero  16 400 6400 824 0 0 100 7324
10  Assembling of all Materials  Conag  2 420 840 90 1300 0 0 2230
11  Final Sewing  Macasero  16 400 6400 0 0 200 0 6600
12  Alterations  Conag  1 420 420 0 0 0 0 420
13  Final Inspection  Manalang  1 415 415 0 0 0 0 415
Total 101 5356 40657 1226 1300 200 200 43583
 The table illustrates the estimated cost of each activity of the project laptop bag. In
the labor rate, the minimum wage of ₱430 petition by the Department of Labor and
Employment (DOLE) is used, and the total estimated activity cost for producing 20 units
of Laptop bags is tabulated. Any prospective cost overruns will be specified and
addressed early on in the project.
B. Work Breakdown Structure of Aggregated Total Budgeted Cost

₱43,583 laptop bag project. The amount for each work package represents the
TBC for performing and completing all the specific activities associated with the work
package.
C. Budgeted Cost by Period

Weeks
TBC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1. Product Sketching  400 400
2. Gathering of Materials  21212 2500 2,800 2800 2800 2800 2800 2800 1720 192
3. Trimming of Materials  820 820
4. Sanitizing of Materials  836 418 418
5. Drying of Materials  836 836
6. Pattern Marking  820 820
7. Cutting Parts Bundling  840 840
8. Layouting of Plastic Strips  800 800
9. Initial Sewing  7354 2954 2800 1600
10. Assembling of all Materials  2230 90 2140
11. Final Sewing  6600 600 2800 2800 400
12. Alterations  420 420
13. Final Inspection  415 415
Total 43583 2900 2800 2800 2800 2800 2800 2800 2958 3106 3754 2890 4340 2800 2800 1235
Cumulative 2900 5700 8500 11300 14100 16900 19700 22658 25764 29518 32408 36748 39548 42348 43583

The table above shows the breakdown of the budgeted cost by period for the laptop
bag project. It indicates the allocation of each total budgeted cost (TBC) throughout the
project. The cumulative budgeted cost (CBC) denotes the total budgeted amount to
accomplish the project that is scheduled to be completed in 15 weeks. The total costs
incurred from weeks 1-15 are added therefore the cumulative budgeted cost at the
conclusive week of making 20 units of Laptop bags is ₱43,583.
 D. Cumulative Budgeted Cost

Based on the cumulative budgeted cost (CBC) curve, we can notice that the project
is on track to meet the total budgeted cost (TBC) of ₱43,583. To guarantee that the
project remains within budget, the project manager will regularly monitor expenditures
and make adjustments if required.