Example of Cost Estimation for Distance Learning System

Step 2. Labor Cost/ Task Technique:
Function         Requirements  Design  Coding  Test  Subtotal
Cal Interface      2.0         5.0     3.0     3.0    13.0
Login Interface    0.5         1.0     1.5     0.5     3.5
Administration     2.0         5.0     4.0     3.0    14.0
PHP                0.5         3.0     2.0     1.0     6.5
Open SSL           1.0         4.0     5.5     3.0    13.5
MySQL              1.5         4.5     4.5     3.5    14.0
Java DBC           1.0         4.5     3.0     3.0     7.5

Total 
 (man-weeks)       8.5        27.0    23.0    16.5    74.0

Rate 
 ($/man-weeks)    $200        $450    $400    $300

Cost            $1,700     $12,150  $9,200  $4,950 $28,000    


Step 3. Avg. Cost (estimated cost) = (31,740 + 28,000) / 2 = $29,870