Based on the provided reference, the formula given is for calculating Dry Disbursement, not specifically "dry price". In project costing, "disbursement" typically refers to the direct costs or expenditures. While "dry price" isn't defined in the reference, the calculation provided details how to determine the core direct costs of a project, often referred to as the "dry disbursement".
Understanding Dry Disbursement
The Dry Disbursement represents the direct costs associated with the labor, supplies, and materials needed for a project. It's a fundamental component of overall project cost estimation.
According to the reference:
The calculation of the dry disbursement of a project is therefore as follows: Dry disbursement = Labor cost + Supply cost + Material cost. To do this costing, start by detailing each element: Labor cost: Multiply the hourly rate by the number of hours required for the work.
This formula breaks down the direct costs into three primary categories.
The Dry Disbursement Formula
Here is the formula for calculating Dry Disbursement as presented in the reference:
Dry Disbursement = Labor Cost + Supply Cost + Material Cost
Breaking Down the Components
To accurately calculate the Dry Disbursement, you need to determine the cost for each element:
- Labor Cost: This is calculated based on the time spent by the workforce and their hourly rates. As per the reference:
- Multiply the hourly rate by the number of hours required for the work.
- Formula:
Labor Cost = Hourly Rate × Number of Hours
- Supply Cost: This includes the cost of various consumables and minor items used during the project that might not be classified as primary materials.
- Material Cost: This covers the cost of the main raw materials or components directly incorporated into the final project output.
Summarizing the Calculation
You can visualize the calculation of Dry Disbursement like this:
| Component | Calculation / Description |
|---|---|
| Labor Cost | Hourly Rate × Number of Hours |
| Supply Cost | Total cost of consumables and supplies |
| Material Cost | Total cost of primary project materials |
| Dry Disbursement | Labor Cost + Supply Cost + Material Cost |
This formula provides a clear method for calculating the direct expenditures of a project based on the provided reference. While the reference doesn't explicitly provide a formula for "dry price," the calculation for "dry disbursement" serves as a crucial foundation for understanding the direct costs involved.
