Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs andtime (months) to a given stage of completion for a project to upgrade a bridge to current standards. The project was originallyestimated to take 25 months to complete. Also presented are the actual results through the first 11 months of the project.PercentageComplete0%4%8%12%16%20%24%28%32%36%40%44%48%52%56%60%64%68%72%76%80%84%88%92%96%100%Cost ($000)Budget02134717751,1251,5201,9612,4472,9793,5574,1804,8495,5636,3237,1297,9808,8779,81910,80711,84112,92014,04515,21516,43117,69319,000Actual01122664647069901,3171,6882,1022,5593,0593,0634,1894,819Months to ReachBudgetActual057891011121314141516171818192020212222232424250112344567891011 12/76%80%84%88%92%96%100%10,0011,84112,92014,04515, 21516,43117,69319,0002021222223242425Required:a. At this time, what is the current cost over- (under-) run on the project?Note: Enter your answer in dollars and not in thousands of dollars.b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?a. Current costb. Percentage of completion%

It is clear from the table that in the last 11 months (see actual Reach Actual Column) the actual…

Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?

Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs and
time (months) to a given stage of completion for a project to upgrade a bridge to current standards. The project was originally
estimated to take 25 months to complete. Also presented are the actual results through the first 11 months of the project.
Percentage
Complete
0%
4%
8%
12%
16%
20%
24%
28%
32%
36%
40%
44%
48%
52%
56%
60%
64%
68%
72%
76%
80%
84%
88%
92%
96%
100%
Cost ($000)
Budget
0
213
471
775
1,125
1,520
1,961
2,447
2,979
3,557
4,180
4,849
5,563
6,323
7,129
7,980
8,877
9,819
10,807
11,841
12,920
14,045
15,215
16,431
17,693
19,000
Actual
0
112
266
464
706
990
1,317
1,688
2,102
2,559
3,059
3,063
4,189
4,819
Months to Reach
Budget
Actual
0
5
7
8
9
10
11
12
13
14
14
15
16
17
18
18
19
20
20
21
22
22
23
24
24
25
0
1
1
2
3
4
4
5
6
7
8
9
10
11

12/
76%
80%
84%
88%
92%
96%
100%
10,00
11,841
12,920
14,045
15, 215
16,431
17,693
19,000
20
21
22
22
23
24
24
25
Required:
a. At this time, what is the current cost over- (under-) run on the project?
Note: Enter your answer in dollars and not in thousands of dollars.
b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?
a. Current cost
b. Percentage of completion
%

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