s Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particularpercentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was atthe end of month 19.PercentageComplete085%10%15%20%25%30%35%40%45%50%55%60%65%70%-75%80%85%90%95%100%Cost ($000)Budget02,2363,1623,8734,4725,0005,4775,9166,3256,7087,0717,4167,7468,0628,3678,6608,9449,2209,4879,74710,000Actuala. Current costb. Percentage of completion07741,5452,3083,0613,7994,5205,2215,8996,5537,1827,7838,3568,9009,4169,90210,36110,79111,194Months to ReachBudgetActual001%123345678910121314161719200468910111213.13.14151516171718Required:a. At this time, what is the current cost over- (under-) run on the project?Note: Enter your answer in dollars and not in thousands of dollars.b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?1819

Introduction:Cost performance in project management is often measured by comparing the budgeted cost…

Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at the end of month 19. Percentage Complete 08 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%. 75% 80% 85% 90% 95% 100% Cost ($000) Budget 0 2,236 3,162 3,873 4,472 5,000 5,477 5,916 6,325 6,708 7,071 7,416 7,746 8,062 8,367 8,660 8,944 9,220 9,487 9,747 10,000 Actual 0 774 1,545 2,308 3,061 3,799 4,520 5,221 5,899 6,553 7,182 7,783 8,356 8,900 9,416 9,902 10,361 10,791 11, 194 Months to Reach Budget Actual . 0 0 1 1 2 3 3 4 5 6 7 8 9 10 12 13 14 16 17 19 20 0 4 6 8 9 10 11 12 13 13 14 15 15 16 17 18 18 19 Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?

Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at the end of month 19. Percentage Complete 08 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%. 75% 80% 85% 90% 95% 100% Cost ($000) Budget 0 2,236 3,162 3,873 4,472 5,000 5,477 5,916 6,325 6,708 7,071 7,416 7,746 8,062 8,367 8,660 8,944 9,220 9,487 9,747 10,000 Actual 0 774 1,545 2,308 3,061 3,799 4,520 5,221 5,899 6,553 7,182 7,783 8,356 8,900 9,416 9,902 10,361 10,791 11, 194 Months to Reach Budget Actual . 0 0 1 1 2 3 3 4 5 6 7 8 9 10 12 13 14 16 17 19 20 0 4 6 8 9 10 11 12 13 13 14 15 15 16 17 18 18 19 Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...

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