The air pollution project discussed in the chapter has progressed over the past

Question

The air pollution project discussed in the chapter has progressed over the past several weeks, and it is now the end of week 8. Lester Harky would like to know the value of the work completed, the amount of any cost overruns or underruns for the project, and the extent to which the project is ahead of or behind schedule by developing a table. The revised cost figures are shown in the following table:

A

Activity Total Budget Cost Percent Completion Actual cost

A

26460 100 27000 B 39900 100 41075 C 34970 100 34000 D 58440 85 50100 E 64900 40 25000 F 38980 25 9800 G 78910 10 80000 H 34900 5 2500

Explanation / Answer

Value = 27,000 + 41,075 + 34,000 + 50,100(0.85) + 25,000(0.40) + 9,800(0.25)

=27,000 + 41,075 + 34,000 + 42,585 + 10,000 + 2,450

=$157,110

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