Question

The forecasted estimate at completion is 75,000. You have spent 38,000 to date and have earned value of 46,000. The variance at completion is 9,000. What is the budget at completion?

1) 29,000
2) 83,000
3) 84,000
4) 121,000

Answer 1

The Budget at Completion (BAC) can be calculated using the formula BAC = EAC + VAC, where EAC is the Estimate at Completion and VAC is the Variance at Completion. By inserting the values provided ($75,000 for EAC and $9,000 for VAC), we find that the BAC equals $84,000.

Step-by-step explanation:

To calculate the Budget at Completion (BAC), you can use the following formulas and information:

• Forecasted Estimate at Completion (EAC): $75,000
• Spent to Date (Actual Cost, AC): $38,000
• Earned Value (EV): $46,000
• Variance at Completion (VAC): $9,000

The Variance at Completion is calculated by subtracting the Estimate at Completion from the Budget at Completion: VAC = BAC - EAC. Therefore, to find the BAC, you would rearrange the formula to be: BAC = EAC + VAC.

Inserting the provided numbers into the formula gives us: BAC = $75,000 + $9,000, which equals $84,000. So, the Budget at Completion is $84,000.