The following information concerns progress at day 40 of an Internet marketing p
ID: 429318 • Letter: T
Question
The following information concerns progress at day 40 of an Internet marketing project. Determine if the project is in control based on time and cost to date. If not, what is the cost overage or underage ?
Activity
Duration
Budget
Actual
Cost
%
Complete
1-2
10
300
250
100.00
2-3
8
400
450
100.00
2-4
12
350
380
100.00
4-3
0
0
0
3-5
18
405
400
70.00
5-6
16
450
-------
0.00
Activity
Duration
Budget
Actual
Cost
%
Complete
1-2
10
300
250
100.00
2-3
8
400
450
100.00
2-4
12
350
380
100.00
4-3
0
0
0
3-5
18
405
400
70.00
5-6
16
450
-------
0.00
Explanation / Answer
Total budgeted time = 10+8+12+18+16 = 64 days
Activity 3-5 is 70% complete by 40th day. According to budgeted, duration, time it should be taken to complete 70% of activity 3-5:
10+8+12+18x0.70 = 42.60
Budgeted time = 42.60
Actual time = 40 days
Since the actual time taken is less than budgeted time, the project is in control in terms of time.
Budgeted total cost till 70% of activity 3-5 = 300+400+350+405x0.70 = 1333.50
Actual cost = 250+450+380+400 =1480
Since actual cost is greater than budgeted cost, the project is out of control in terms of cost.
Cost overage = 1480-1333.50 =146.50
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