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A project has been estimated to take eight weeks and cost $65,000. The critical

ID: 2349763 • Letter: A

Question

A project has been estimated to take eight weeks and cost $65,000. The critical path is A - D. Cost and earned value data are provided below:







EV


PV








AC










Budget


BCWP


-BCWS


SV


SPI


-ACWP


CV


CPI

A


$8,500


$8,500


$8,500


$ -


1.00


$7,100


$1,400


1.21

B


$15,000


$15,000


$15,000


$ -


1.00


$13,000


$2,000


1.15

C


$6,800


$2,530


$2,700


($170)


0.94


$4,000


($1,470)


0.63

D


$18,000


$900


$3,000


($2,100)


0.30


$1,200


($300)


0.75

E


$16,000


$0


$0


$ -





$0


$ -




Project


$65,000


26,930


29,200


($2,270)


0.92


$25,300


$830


1.06

(i) Calculate the Estimate At Completion (EAC) considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to date.
(iii) Using either of these two numbers discuss the status of the project and if the project manager needs to take corrective actions. Justify your comments.

Explanation / Answer

https://docs.google.com/viewer?a=v&q=cache:GxZn5so-K8IJ:ww2.justanswer.com/uploads/BusinessTutor/2011-01-19_190219_jjpotter.docx+The+accounting+records+of+NuTronics,+Inc.,+include+the+following+information+for+the+year+ended+December+31,+2011.+Dec.+31+Jan.+1+Inventory+of+materials+%24+24,000+%24+20,000+Inventory+of+work+in+process+8,000+12,000+Inventory+of+finished+goods+90,000+80,000+Direct+materials+used+219,000+Direct+labor+107,000+Selling+expenses+170,000+General+and+administrative+expenses+140,000+Overhead+is+assigned+to+production+at+%24192,000.+a.+Prepare+a+schedule+of+the+cost+of+finished+goo&hl=en&gl=in&pid=bl&srcid=ADGEESj9TZN5kYNgTpbVXwdK8Uy3Ff-d5fprc0sdKZu5151ml32pOCnbw_YYNyIHX4kNHWCwfdSvCWf3xpXxth18YKraeDQ5drf_Y_BAvdcVKp76a0yEe0g74_66Xe6MyRTaVtnrxC_p&sig=AHIEtbRfXFimYaT3uwzuHHXk2DoJ_fLDBA