Answer To: Follow the instructions and finish the questions. And do not use Chatgpt.
Pashikanti Sneha answered on Jul 02 2023
Lesson 8 Questions (Please show all equations and all your work related to all calculations.)
Name:
1. Refer to Table Q1 below. What is the cumulative budgeted cost (CBC) at the end of Week 6? (Refer to your Gido et al. book for an example, starting on page 249). For your convenience you can type into the table directly for calculating the cumulative totals by week, but you must include your final answer to the question in the space provided below (show work).
Table Q1: Budgeted Cost by Period for ENGR Inc. Project. Table includes total budgeted cost (TBC) and budgeted cost by week for each task as well as the total across all tasks for the total project and by week.
Week
TBC
1
2
3
4
5
6
7
8
9
10
Task 1
31
10
14
7
Task 2
78
12
10
12
21
13
10
Task 3
46
5
6
29
6
Task 4
37
8
5
24
Total
192
10
26
17
12
26
19
39
14
5
24
Cumulative
Amounts are in thousands of dollars.
Cumulative budgeted cost (CBC) at Week 6 is:
Q1) To calculate the cumulative budgeted cost (CBC) at the end of Week 6, we need to sum up the budgeted costs for each task up to Week 6. Here's the calculation:
Task 1:
Week 1: $10, Week 2: $14, Week 3: $7
Task 2:
Week 2: $12, Week 3: $10, Week 4: $12, Week 5: $21, Week 6: $13
Task 3:
Week 5: $5, Week 6: $6
Task 4:
None
Now let's calculate the cumulative budgeted cost (CBC) at Week 6:
CBC = Task 1 (Week 1 + Week 2 + Week 3) + Task 2 (Week 2 + Week 3 + Week 4 + Week 5 + Week 6) + Task 3 (Week 5 + Week 6)
CBC = ($10 + $14 + $7) + ($12 + $10 + $12 + $21 + $13) + ($5 + $6)
CBC = $31 + $68 + $11
CBC = $110
Therefore, the cumulative budgeted cost (CBC) at the end of Week 6 is $110,000.
2. Answer the questions below in reference to the information in Table Q2. Table Q2 includes the actual costs associated with the previous question and the ENGR Inc. Project. For your convenience you can type into the table directly for calculating the cumulative totals by week, but you must include your answers to the questions in the space provided below for Parts a–c:
Table Q2: Actual Cost by Period (week) for the ENGR Inc. Project.
Week
1
2
3
4
5
6
Task 1
12
17
7
Task 2
11
12
11
27
12
Task 3
6
7
Task 4
Total
12
28
19
11
33
19
Cumulative
Amounts are in thousands of dollars.
a. What is the cumulative actual cost (CAC) at the end of Week 6? (show work)
CAC at Week 6 is:
b. Determine whether there is a cost overrun or underrun and report the amount:
i. Cost overrun or underrun:
ii. Dollar amount:
c. What is causing the overrun or underrun (identify the specific tasks and dollar amounts)?
Tasks and dollar amounts:
Q2)
To answer the questions related to Table Q2, let's perform the necessary calculations:
a. To calculate the cumulative actual cost (CAC) at the end of Week 6, we need to sum up the actual costs for each task up to Week 6.
Task 1:
Week 1: $12, Week 2: $17, Week 3: $7
Task 2:
Week 2: $11, Week 3: $12, Week 4: $11, Week 5: $27, Week 6: $12
Task 3:
Week 5: $6, Week 6: $7
Now let's calculate the cumulative actual cost (CAC) at Week 6:
CAC = Task 1 (Week 1 + Week 2 + Week 3) + Task 2 (Week 2 + Week 3 + Week 4 + Week 5 + Week 6) + Task 3 (Week 5 + Week 6)
CAC = ($12 + $17 + $7) + ($11 + $12 + $11 + $27 + $12) + ($6 + $7)
CAC = $36 + $73 + $13
CAC = $122
Therefore, the cumulative actual cost (CAC) at the end of Week 6 is $122,000.
b.
i) To determine if there is a cost overrun or underrun, we compare the cumulative actual cost (CAC) with the cumulative budgeted cost (CBC) at the end of Week 6.
CAC at Week 6 = $122,000
CBC at Week 6 = $110,000
Since CAC > CBC, there is a cost overrun.
ii) The dollar amount of the cost overrun is $12,000.
c. To identify the specific tasks and dollar amounts causing the underrun, we compare the actual costs for each task with their respective budgeted costs up to Week 6.
Cost Overrun: CAC > CBC
Cost Underrun: CAC < CBC
Task 1:
Budgeted Cost: $31,000
Actual Cost: $36,000 (overrun of $5,000)
Task 2:
Budgeted Cost: $68,000
Actual Cost: $73,000 (overrun of $5,000)
Task 3:
Budgeted Cost: $11,000
Actual Cost: $13,000 (overrun of $2,000)
Task 4:
Budgeted Cost: Not provided
Actual Cost: Not provided
Therefore, the specific tasks causing the overrun are Task 1, Task 2 and Task 3, with respective overrun amounts of $5000, $5000 and $2000.
3. Table Q3 below includes the cumulative percentages of work completed by week, up to the end of Week 6. Answer the questions below.
Table Q3: Cumulative Percent Complete by Period (week) for the ENGR Inc. Project.
Week
1
2
3
4
5
6
Task 1
34
75
100
Task 2
11
22
38
51
66
Task 3
11
21
Task 4
Amounts are cumulative % complete.
a. What is the cumulative earned value (CEV) of the project at the end of Week 6? (show equation and work)
CEV =
b. Is it good? Explain why:
Q3)
a.
CEV = (Task 1 CEV + Task 2 CEV + Task 3 CEV + Task 4 CEV)
Task 1 CEV = Cumulative % Complete * Task 1 Budgeted Cost = 100% * ($10,000 + $14,000 + $7,000) = $31,000
Task 2 CEV = Cumulative % Complete * Task 2 Budgeted Cost = 66% * ($12,000 + $10,000 + $12,000 + $21,000 + $13,000) = $44,880
Task 3 CEV = Cumulative % Complete * Task 3 Budgeted Cost = 21% * ($5,000 + $6,000) = $2,310
Task 4 CEV = Not provided (assuming 0)
CEV = $31,000 + $44,880 + $2,310 + $0 = $78,190
Therefore, the cumulative earned value (CEV) of the project at the end of Week 6, considering the budget only up to the 6th week, is $78,190.
b.
CAC = $122,000 and CEV = $78,190. This project is behind schedule or over budget.
To evaluate the performance of the project, we usually compare the CEV with the...