We want to set up the purchase of a new software program as an asset. What all can be included in the cost of the asset? We are wondering about labor involved from our it dept and accounting dept directly related to getting the software ready for use

You can count labor. The basic idea is the price, plus nearly anything it took to purchase, install, make ready, etc. the asset for its intended purpose. If you can consider the labor as part of this, then you can count it.