Question

Spot Construction builds roads, bridges, and other infrastructure. The following is the budget for a road project along with the actual results (in thousands of dollars) for the last fifteen months. Month 1 m in Actual Cost Complete $ 0 0.0% $ 700 5.5% $ 1,160 11.2% $ 1,820 13.4% $ 2,270 21.6% $ 2,810 27.5% $ 3,190 34.0% $ 3,870 36.5% $ 4,200 45.0% $ 4,710 48.8% $ 5,400 53.4% $ 5,920 56.7% $ 6,300 62.3% $ 7,190 70.0% $ 7,600 74.3% $ 8, 120 80.0% 00 Budget Cost Complete $ 0.0% $ 510 5.0% $ 1,020 10.0% $ 1,530 15.0% $ 2,040 20.0% $ 2,550 25.0% $ 3,060 30.0% $ 3,570 35.0% $ 4,080 40.0% $ 4,590 45.0% $ 5,100 50.0% $ 5,610 55.0% $ 6,120 60.0% $ 6,630 63.3% $ 7,140 66.7% $7,650 70.0% $ 8,160 73.3% $ 8,670 76.7% $ 9, 180 80.0% $ 9,690 83.3% $10,200 86.7% $10,710 90.0% $11,220 93.3% $11,730 96.7% $12,240 100.0% 10 11 12 13 15 16 17 18 19 20 21 22 23 24

Answer 1

Compute the current cost on the project as follows: Amount ($) Particulars Current cost: Actual cost (Under budget) Remaining cost ($12,240-$9,180) Current cost Percentage of completion (80%-70% $8,120 $3,060 $11,180 10% (Ahead) Therefore, Current cost is $11,189. Current cost under on project is $1,060 (i.e. $9180-$8,120). Project is 10% (80%-70%) ahead of schedule.