Assume the following (T&M Contract) : A budget has been established to install 400 ft of pipe at an estimated 150 man hours and a billable cost of $5,040 (note: bare labor cost is $3,360). The original schedule planned for 80 ft of pipe to be installed per day by a 3-man crew working an 8-hour shift. The job was scheduled to start on Monday and finish on Friday. On Monday 60 ft of pipe was installed. On Tuesday 70 ft of pipe was installed and on Wednesday 50 ft of pipe was installed. Actual cumulative man hours incurred to-date is 72 hrs. Note: Assume that $1,000 has been billed to the client to-date. What is the current earned dollar value of the work in place (completed) ? a. $1.780 b. $2,268 c. $4,500.50 d. $2,800.27

Question

Business

Savanah Day

30 April, 00:10

Assume the following (T&M Contract) : A budget has been established to install 400 ft of pipe at an estimated 150 man hours and a billable cost of $5,040 (note: bare labor cost is $3,360). The original schedule planned for 80 ft of pipe to be installed per day by a 3-man crew working an 8-hour shift. The job was scheduled to start on Monday and finish on Friday. On Monday 60 ft of pipe was installed. On Tuesday 70 ft of pipe was installed and on Wednesday 50 ft of pipe was installed. Actual cumulative man hours incurred to-date is 72 hrs. Note: Assume that $1,000 has been billed to the client to-date. What is the current earned dollar value of the work in place (completed) ? a. $1.780 b. $2,268 c. $4,500.50 d. $2,800.27

+1

Answers (1)

Know the Answer?

Brynn Lynch · Answer 1

The current earned dollar value of the work in place (completed) is $2,268. The right answer is b

Explanation:

According to the given data we have the following:

total pipeline installed=60+70+50 = 180 ft

total cost = $ 5,040

unite price of pipeline=$5,040/400=$12.6

Therefore, in order the current earned dollar value of the work in place completed we would have to use the following formula:

current earned value = pipeline installed*unit price of pipeline=

current earned value=180 * $12.6

current earned value=$2,268

The current earned dollar value of the work in place (completed) is $2,268