Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.
A) FCAC = $7,000
B) FCAC = $17,000
C) FCAC = $13,000
D) FCAC = $37,000

Question

Quizplus · Accepted Answer

Based on the given data, we can calculate the following:
- Schedule Variance (SV) = Cumulative Earned Value (EV) - Cumulative Planned Value (PV)
SV = $12,000 - $15,000 = -$3,000 (since EV is less than PV, it is negative)
- Cost Variance (CV) = Cumulative Earned Value (EV) - Cumulative Actual Cost (AC)
CV = $12,000 - $10,000 = $2,000
- Cost Performance Index (CPI) = Cumulative Earned Value (EV) / Cumulative Actual Cost (AC)
CPI = $12,000 / $10,000 = 1.2
- Estimate at Completion (EAC) = Total Budgeted Cost / Cost Performance Index (CPI)
EAC = $15,000 / 1.2 = $12,500
- Forecasted Cost at Completion (FCAC) = Cumulative Actual Cost (AC) + (Total Budgeted Cost - Cumulative Earned Value (EV))
FCAC = $10,000 + ($15,000 - $12,000) = $13,000
Therefore, the answer is C as the forecasted cost at completion is $13,000.

Calculate the Forecasted Cost at Completion If the Total Budgeted