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Accounting

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A project segment consists of three tasks. Task A is scheduled to begin at the start of week one and finish at the end of week three. Task B is scheduled to begin at the start of week one and finish at the end of week two. Task C is scheduled to begin at the start of week two and end at the end of week three. Budgeted cost for Task A is $148,450, for Task B is $121,000, and for Task C is $93,900. Your initial budget included a total contingency of $86,000. Balance of your contingency fund remains strong with $47,800 of $86,000 remaining after week one. However, unforeseen construction conditions require using $14,350 of this contingency balance in week two. 100 percent of unused contingency is returned to project owner. This project has a very high level of risk, supporting a risk factor of 35% which equates to labor coverage of $71,649. Coincidentally, labor costs are running approximately 15% over budget due to project complexity. At the end of week two, Task A is 50\% complete, Task B is 80% complete, and Task C is 45% complete. Actual cost of work for tasks A, B and C performed at the end of week two for project segment in Problem 3 is $151,000 and none of your allocated risk factor funds have been used. Calculate estimated cost to complete for project segment based on information in this problem and project schedule performance index for tasks A, B and C corresponding to end of week two. Assume cost performance index remains stable throughout remainder of project and labor budget stabilizes. $168,991 $106,112 $72,694 $182,122 $98,720

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