22) Your company has a signed contract to complete a job for $225,000. The total

Question

22) Your company has a signed contract to complete a job for $225,000. The total estimated cost and there are no anticipated change orders. The costs incurred to date are $173,550 is $195,000 and you have billed your customer $200,000. Which of the following is correct? a. Customer under billed by $750 b. Customer over billed by $750 (73.5S Customer over billed by $26,450 aCustomer under billed $250 23) You have a budget (your costs) on Job #301 of $250,000. Committed cost are $205,000 and non-committed costs have been invoiced for $15,000 and the cost to complete will be $20,000. a. The project is over budget by $10,000 b The project is under budget by $10,000 c. We are right on budget d. None of the above

Explanation / Answer

22 Option " d. Customer under billed $250" is correct Contract to complete the Job          2,25,000 Estimated Cost to Job          1,95,000 % of the contract to cost 225000/195000 115.384615% Cost incurred till date          1,73,550 Billing to be done 173550*115.384615%          2,00,250 Actual Billing Amount          2,00,000 Customer underbilled                   250 23 Option "b. The project is under budget" is correct Total Budget          2,50,000 Less: Committed Cost                           2,05,000 Less: non-Committed Cost                              15,000 Less: Cost to Complete                              20,000          2,40,000 The project is under budget by             10,000 or in other words we can say project is completed within budget with a favourable variance of $10,000

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