Analyse on the variance between the planned and actual nett profit contribution of all the projects as of the 31st of March, and comment on the status of the projects.
Analyse on the variance between the planned and actual nett profit contribution of all the projects as of the 31st of March, and comment on the status of the projects.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 18M
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Analyse on the variance between the planned and actual nett profit contribution of all the projects as of the 31st of March, and comment on
the status of the projects.
Transcribed Image Text:You are currently working as a planner in a construction company. The
company is currently running 4 different construction works. The monthly
planned value of work done for each project is according to the schedule as
shown in Table 2.
Table 2: The Planned Value of Work Done Schedule
March
120,000
120,000
70,000
100,000
April
120,000
140,000
90,000
120,000
May
200,000
140,000
100,000
150,000
Jan
Feb
Project A
Project B
Project C
Project D
60,000
100,000
80,000
120,000
100,000
80,000
80,000
120,000
Based on the data obtained from each project, you have found out the value of
work done on the 31st of March, which is shown in Table 3 below.
Table 3: The Actual Value of Work Done and Direct Cost Incurred as of the
31st of March
Project
Actual Value of Work Direct Cost Incurred
Done
300,000
250,000
250,000
280,000
A
220,000
180,000
200,000
240,000
B
C
D
Each project is supposed to contribute 10% profit and 8% overhead to the
company. You are requested to present to the company the turnover as of the
31st of March. Prepare your answer by answering the following questions.
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