Below is a table showing the total budgeted cost (TBC) vs total actual costs (TAC) in thousands over the 12 months period so far. Month 1 2 3 4 5 6 7 8 9 10 11 12 TBC 100 150 50 60 100 125 105 100 120 115 110 100 TAC 100 160 45 55 55 90 125 105 100 121 112 110 100 Using the table above, determine whether there is a cumulative cost overrun or underrun by the following months: i. Month 2 Month 6 ii. NOTE: In each case; state whether it's overrun/underrun and show the variance amount.
Below is a table showing the total budgeted cost (TBC) vs total actual costs (TAC) in thousands over the 12 months period so far. Month 1 2 3 4 5 6 7 8 9 10 11 12 TBC 100 150 50 60 100 125 105 100 120 115 110 100 TAC 100 160 45 55 55 90 125 105 100 121 112 110 100 Using the table above, determine whether there is a cumulative cost overrun or underrun by the following months: i. Month 2 Month 6 ii. NOTE: In each case; state whether it's overrun/underrun and show the variance amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Below is a table showing the total budgeted cost (TBC) vs total actual
costs (TAC) in thousands over the 12 months period so far.
Month
1
2
3
4 5
6
7
TBC 100 150 50 60 100 125 105 100 120
8 9 10 11 12
115 110 100
TAC 100 160 45 55 90 125 105 100 121 112 110 100
Using the table above, determine whether there is a cumulative cost
overrun or underrun by the following months:
i.
Month 2
Month 6
ii.
NOTE: In each case; state whether it's overrun/underrun and show the
variance amount.
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