A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for Activity A?
A) $0 − $5K
B) $5.01K − $10K
C) $10.01K − $15K
D) $15.01K − $20K
E) Over $20K

Question

Quizplus · Accepted Answer

To calculate the BCWS (Budgeted Cost of Work Scheduled) for Activity A, we use the formula:

BCWS = Planned % Complete x Budgeted Cost

Planned % Complete for Activity A is 90% and the Budgeted Cost is $22K. Therefore, BCWS for Activity A is:

BCWS = 90% x $22K = $19.8K

However, we also need to take into account the actual percentages complete for the current date to calculate the Earned Value. The Earned Value for Activity A is:

EV = Actual % Complete x Budgeted Cost

Actual % Complete for Activity A is 100% and the Budgeted Cost is $22K. Therefore, EV for Activity A is:

EV = 100% x $22K = $22K

Now, we can calculate the BCWP (Budgeted Cost of Work Performed) for Activity A, which is simply the Earned Value:

BCWP = EV = $22K

Finally, we can calculate the Schedule Variance (SV) for Activity A, which is the difference between the BCWP and BCWS:

SV = BCWP - BCWS = $22K - $19.8K = $2.2K

Therefore, the best choice is D) $15.01K − $20K, as this range includes the actual value of $22K and the SV is positive, indicating that the project is ahead of schedule for this activity.

A Project Has Four Activities: A, B, C, and D