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 the project?
A) $0 − $15K
B) $15.01K − $30K
C) $40.01K − $45K
D) $45.01K − $60K
E) Over $60K

Question

Quizplus · Accepted Answer

To calculate the BCWS (Budgeted Cost of Work Scheduled), we need to use the planned percentages complete for the current date.

BCWS = Planned % complete * Total planned cost

Total planned cost = $22K + $14K + $12K + $28K = $76K

For activity A: 
Planned % complete = 90%
BCWS for A = 90% * $22K = $19.8K

For activity B: 
Planned % complete = 80%
BCWS for B = 80% * $14K = $11.2K

For activity C: 
Planned % complete = 70%
BCWS for C = 70% * $12K = $8.4K

For activity D: 
Planned % complete = 20%
BCWS for D = 20% * $28K = $5.6K

Total BCWS = $19.8K + $11.2K + $8.4K + $5.6K = $45K

Since the actual cost of work performed to date is $40K, the project is currently under budget (with a cost variance of $40K - $45K = -$5K). Therefore, the answer is C.

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