Cost Benefits Analysis

CHAPTER 6
COST BENEFITS AND ANALYSIS

6.1 Costing for the Current System

6.1.1 Cost of Labor

Professional Rate 1 Payroll Manager
93.75/hr
750/day
15,000/month
1HRD Assistant
81.25/hr
650/day
13,000/month
Total

Php 23,000/month

6.1.2 Supplies

Price
Total
Supplies (Annual)

Bond paper

- Short Bond Paper
1500pcs.
1.00 each
1500.00
- Long Bond Paper
1500pcs.
2.00 each
3000.00
Stapler
6pcs.
125.00 each
750.00
Staple
50 boxes
20.00 each
1000.00
Folder
24pcs.
6.00 each
144.00
Ball pen
25pcs.
12.00 each
300.00
Printer Ink

4000.00
Total

Php 10,694.00

6.1.3 Equipments

Equipment

Computer Set
2pcs.
32,000each
64,000

6.1.3 Maintenance

Labor
IT expert (available upon request by the company)
Php 2,000.00

6.2 Cost Proposal

6.2.1 Non Professional Rate

1 Payroll Manager
56.25/hr
450/day
9,000.00
1HRD Assistant
37.5/hr
300/day
6,000.00
Total

Php 15,000.00

6.2.2 Proposal System for the First Year

6

6.2.3 Proposal for the Next Ten Years

Bond Paper (short)
150.00
(long)
350.00
Printer Ink
900.00
Maintenance
3,000.00
Total Cost
Php 4,400.00

The Cost of current system for the supplies is Php 10,694.00 in their manual way of processing the payslip and records. In this Proposed System, the possible expenses would be Php 24,400.00 and yet it would be lessen for the next coming years

6.3 Comparison of Current and Proposed System

System Development
Present System
Proposed System
Variance
Labor Cost
23,000
15,000
8,000.00
Equipments

64,000
-64,000.00
Total

Php -56,000.00

6.3.1 System Operational Set-up for the First year of Implementation

System Maintenance
Present System
Proposed System
Variance

Qty. Amount
Qty. Amount

Bond paper

- Short Bond Paper
1500pcs. 1500.00
150pcs. 150.00
1,350.00
- Long Bond Paper