Budgeted Costs for the 3-Tiered Training

Cost Allocations
Direct costs:
The predominant direct costs can be
traced to salary for the ABC Consulting
team. There is no direct costs associate
with the Tier 1 training, since it is all online
and the computers and equipment are not
being provided.

Budgeted Amounts
Team program planning for 40 hours for 1
project manager $175/hr , 1 software
developer $100/hr and 2 trainers $85x2
=$170/hr:
$17,800

The Tier 2 training costs for 1 trainer to

conduct a 30hr total sessions with 800
managers $85 x 30 hrs x 5 weeks:

$12,750

The Tier 3 training costs for 2 trainers to

teach 1200 non-management staff for 3
hour sessions for 5 weeks - $85 x 2 x 12
hrs x 5 weeks:
$12,240

Total Direct Costs:

Indirect costs:
The indirect costs associated with the 3
Tier training program we designed are
associated with the time communicating
with Diane Sinatra in implementing the
program and administrative costs for
running the classroom programs.

$42,790

Salary costs associated with the team

communicating with Diana Sinatra through
email, phone calls and in person meetings:
$1000
The Tier 2 supplies cost - booklets and
pens for 800 managers:
$450
The Tier 3 supplies cost - booklets and
pens for 1200 non-managers:

$3000
Food and beverages for the 3hour Tier 3
sessions with 1200 non-managers:
$18,000

Total Development Costs:

Development costs:
The development costs are associated
with the salary for the work the team did to
create and design the program for the
online training and the in-class training
modules.

$42,000

Software developer labour costs for

designing the online training program
$100/hr x 250 hrs:
$25,000

2 trainer salary costs for designing the

class room training for Tier 2 and 3 - $85
x 2 x 100:
$17,000

Total Development Costs:

Overhead costs:
The overhead costs are associated with
the rental space for the Toronto Tier 3
training, since there were 1200 staff, we
needed to rent space to conduct classroom
training.

Toronto building rental overhead costs:

$1500

Total Overhead Costs:

Incentives for participants:
The Tier 2 and 3 training participants
receive compensation incentives for
completing the training.

$42,000

$1500

Tier 2 manager incentive of $350 for

completing training for 800 managers:
$280,000
Tier 3 non-manager incentive of $100 for
completing training for 1200 non-manager:

$120,000

Total incentive compensation for

participants:
$400,000

Compensation for participants

Tier 2:

Senior Manager - Tier 2 salary costs

(when not at job) across all sites. 200
employees x $250/hr x 2hrs of training:

Salaries of participants, when they were at

the training and not at their job completing
the training.
$100,000

District and Front Line Managers - Tier 2

salary costs (when not at job) across all
sites. 600 employees x $125/hr x 2hrs of
training:
$150,000

Marketing and Finance Professionals Tier 2 salary costs (when not at job) across
all sites. 400 employees x $125/hr x 2hrs
of training:

$100,000

Software developers and testers - Tier 2

salary costs (when not at job) across all
sites. 400 employees x $100/hr x 2hrs of
training:

$80,000

Associates - Tier 2 salary costs (when not

at job) across all sites. 400 employees x
$85/hr x 2hrs of training:

$68,000

Total Tier 2 Employee Salary for taking

2 hours of training:
$498,000

Tier 3 non-manager incentive of $100 for

completing training for 1200 non-manager:
$120,000

Total incentive compensation for

participants:
$400,000

Compensation for participants

Tier 3:
Salaries of participants, when they were at
the training and not at their job

Marketing and Finance Professionals Tier 3 salary costs (when not at job) across
all sites. 400 employees x $125/hr x 3hrs
of training:

$150,000

Software developers and testers - Tier 3

salary costs (when not at job) across all
sites. 400 employees x $100/hr x 3hrs of
training:

$120,000

Associates - Tier 3 salary costs (when not

at job) across all sites. 400 employees x
$85/hr x 2hrs of training:

$102,000

Total Tier 3 Employee Salary for taking

3 hours of training:

$372,000

Total Compensation and Incentives $1,270,000

Total Training Costs $86,290
Cost per participant $43