Smidge Corporation is trying to figure out the value of work that has been completed on their space building project since its inception $10$ weeks ago. They have approached you to help them with the evaluation. They wanted to know the value of work completed to date, the amount of any cost overruns or underruns for the project, and the extent to which the project is ahead of or behind schedule by developing a table like Table $1.$ Using the budgeted amount in Table $1,$ is this company overrunning or underrunning the budget?

Percent Complete Value of work Completed Actual cost Activity Difference Total Budgeted Cost

$1$ $$22,000$ $$22,000$ $$-$ $$22,000$

$1$ $$30,000$ $$36,000$ $$(6,000)$ $$30,000$

$1$ $$26,000$ $$26,000$ $$-$ $$26,000$

$1$ $$48,000$ $$44,000$ $$4,000$ $$48,000$

$0\mathrm{.}5$ $$28,000$ $$25,000$ $$3,000$ $$56,000$

$0\mathrm{.}6$ $$18,000$ $$15,000$ $$3,000$ $$30,000$

$0\mathrm{.}1$ $$8,000$ $$5,000$ $$3,000$ $$80,000$

$0\mathrm{.}1$ $$1,600$ $$1,000$ $$600$ $$16,000$

Totals: $$181,600$ $$174,000$ $$7,600$ $$308,000$

Answer rating: 100% (QA)

To determine if the company is overrunning or underrunning the budget we need to comp... View the full answer