I typed out a whole response for you yesterday, but then lost it somehow. I was going to recommend the same thing as forbamblues. Is this powder room the bathroom that your guests will be using? If so, I'd much rather have the door off the kitchen than having them traipse through my mudroom. For one thing, I wouldn't want my guests having to see that clutter, and for another, they will then be walking all the way through your kitchen rather than just utilizing the top corner of the space (outside your work triangle). I'm also going to be the oddball here and say I'd actually prefer my W/D to be on the first floor b/c that's where I spend all my time. Right now, my laundry is in our basement. Aside from the obvious walk up/down two flights of stairs, the other reason I don't like it there is because I hate having to go up and down the stairs all the time (from the kitchen/family room) to switch out loads of laundry. The same thing would happen if I had the laundry upstairs near the bedrooms - constantly having to go upstairs to switch out the loads. Perhaps my viewpoint is a bit jaded by the amount of laundry I do as a family of six, but I'd rather have the laundry nearby so when a load is done, I can more quickly get to it. That said, I do see the benefits of having the W/D near the hampers upstairs! If, however, you find that you don't have it in your budget to move the W/D, this would be my suggestion. Close off the door from the mudroom to the powder room and move your W/D over to that wall where the door is now. You'd have to also take out the closet on the side wall, but then you could add cabinetry above the W/D to store what is in that closet. Then in the space where the W/D is currently you could put cubby/lockers. As for shoe storage, we have a cubby system that dh built in our mudroom for our four kids. It looks very similar to the second photo that Melissa posted with the open storage underneath. I bought baskets from IKEA that my kids use for their shoes, but we don't' have an issue much with mud/rain/etc as they typically leave their boots or sports cleats in the garage. However, if you have to deal with that often, I'd suggest just buying an indoor/outdoor rug and put it underneath the cubby space to catch the dirt and water. They are very easy to keep clean (I have one in my entryway). In my own space, I just pull the baskets out every once in a while and vacuum with a handheld vacuum underneath the cubbies to get up all the dirt/dust/etc. BTW, am I the only one who has this nice divided space for my kids to leave their backpacks/coats/shoes but they still manage to leave their crap all over? There are days I walk in the mudroom, and despite having a basket RIGHT THERE for their shoes, they still leave them all over the floor b/c they are too lazy to pull out their basket! Or they leave their sweatshirts/jackets/etc on the bench instead of hanging them up. Drives me nuts! Good luck with your remodel - you have a great space to work with!

The moldings, bench, cabinets, and counter could probably be installed by the same carpenter (just make sure he's done laminate before - don't let your project be his guinea pig). The flooring by a tile guy. The painting by a third guy. And that's it. As long as he is not making the cabinets (just installing them), I'd say the carpentry work is maybe $2500. Painting the room, moldings, and bench should be under $1000. Maybe $700? Cost of your tile labor should be around $700 too, assuming the floor is not crazy out of level and you demolish the old floor yourselves. So say $5000 in labor to give you cushion, plus the cost of materials, which your choice of cheap vs. expensive tile, cheap vs. expensive paint, etc. would affect greatly. Since you are not moving plumbing or electrical and would have so few subs, this might be one you want to GC yourselves to save the money you would pay for project management. You could come in under $10,000 easy. Possibly more like $8,000.

How many steps up into the house from the garage?

I did not do the final designs you see. I used PAINT, but then my cabinet designer drew what you see above. The shelves in my study sit on top of an air return box (the grill is facing in the hall behind the study wall. I added a photo of that. Grill outlines in white.) Since there was this large hump sticking out in the study, I decided that the space above could be put to good use. I did a similar thing in the back of our house. Air return in hallway. Bump out was in my closet. I built shelves about it for pocketbooks. You could build a cabinet with doors above your air return.