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Week BUDGETED COSTS Task 1 Task 2 Task 3 Task 4 TBC 25 20 50 20 15 10 105 25 25 10 10 Numbers are in Sthousands Week 20 Task

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Answer #1

From the tables given in question, we get answers as shown below:

a) Cumulative budgeted cost at the end of week 3 = Sum of total budgeted cost for each activity for each week 3= Total budgeted cost for task 1 for week 1 + Total budgeted cost for task 1 for week 2 + Total budgeted cost for task 2 for week 2 + Total budgeted cost for task 2 for week 3 + Total budgeted cost for task 3 for week 3 (We stop at week 3 since end of week 3 costs are required)

= 15 + 10 + 5 + 10 + 25 = $65 thousands

Hence cumulative budgeted cost at the end of week 3 = $65 thousands

b) Cumulative actual cost at the end of week 3 = Sum of total actual cost for each activity for each week 3 = Actual cost for task 1 for week 1 + Actual cost for task 1 for week 2 + Actual cost for task 2 for week 2 + Actual cost for task 2 for week 3 + Actual cost for task 3 for week 3 (We stop at week 3 since end of week 3 costs are required)

= 20 + 10 + 10 + 15 + 30 = $85 thousands

Hence cumulative actual cost at the end of week 3 = $85 thousands

c) Cumulative earned value at the end of week 3 = \sum % work complete x Total budgeted cost for that complete task by end of  week 3

As seen from table, 100% of task 1 is complete, 100% of task 2 is complete and 90% of task 3 is complete by end of week 3

Total earned value = 100% of total cost of task 1 + 100% of total cost of task 2 + 90% of total cost of task 3

= 100% x 25 + 100% x 20 + 90% x 50 = 25+20+45 = $90 thousands

Hence, cumulative earned value at the end of week 3 = $90 thousands

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