Funtime Corporation Assume that Funtime Corp.has agreed to construct a new playground for Durrey County for $2,300,000.Construction of the new playground will begin on March 17,2012 and is expected to be completed in August 2013.At the signing of the contract Funtime Corp.estimates that the it will cost $1,600,000 to build the playground.
At the end of 2012 Funtime provided the following information about the project:
What percentage is playground complete?
A) 62.5%
B) 43.5%
C) 55.6%
D) 50.0%

Question

Funtime Corporation Assume that Funtime Corp.has agreed to construct a new playground for Durrey County for $2,300,000.Construction of the new playground will begin on March 17,2012 and is expected to be completed in August 2013.At the signing of the contract Funtime Corp.estimates that the it will cost $1,600,000 to build the playground.
At the end of 2012 Funtime provided the following information about the project:
 What percentage is playground complete?
A) 62.5% 
B) 43.5% 
C) 55.6% 
D) 50.0%

Quizplus · Accepted Answer

To determine the percentage of completion, we need to divide the actual cost incurred for the work done by the estimated cost of the entire project.

From the information given, at the end of 2012: 
- Costs incurred for work done to date: $1,000,000 
- Estimated cost of the entire project: $2,300,000

Percentage of completion = (Costs incurred for work done to date / Estimated cost of the entire project) x 100% 
= ($1,000,000 / $1,800,000) x 100% 
= 55.6%

Therefore, the answer is C, 55.6%.

Funtime Corporation Assume That Funtime Corp