PK0-003 · Question #63
A project manager has contracted with a landscaping service to complete the grounds work on a new building. The landscaper provides the project manager with the following costestimate: $150 per hour,
The correct answer is C. $5250. Earned Value (EV) measures the value of the work actually performed to date, calculated by multiplying the budgeted rate by the actual hours completed. For this project, the earned value is the product of the hourly rate and the hours worked.
Question
A project manager has contracted with a landscaping service to complete the grounds work on a new building. The landscaper provides the project manager with the following costestimate:
$150 per hour, estimated time to completion=40 hours The landscaper has completed 35 hours of work. Which of the following is the Earned Value of this portion of the project?
Options
- A$750
- B$3000
- C$5250
- D$6000
How the community answered
(24 responses)- A4% (1)
- B8% (2)
- C71% (17)
- D17% (4)
Why each option
Earned Value (EV) measures the value of the work actually performed to date, calculated by multiplying the budgeted rate by the actual hours completed. For this project, the earned value is the product of the hourly rate and the hours worked.
$750 is the remaining budget for the incomplete work (5 hours * $150), not the earned value.
$3000 is an arbitrary number not directly derived from the given figures for earned value.
Earned Value (EV) represents the budgeted cost of the work performed. In this scenario, the work completed is 35 hours, and the budgeted rate is $150 per hour. Therefore, EV = 35 hours * $150/hour = $5250.
$6000 is the total planned budget at completion (40 hours * $150), not the earned value of the work completed so far.
Concept tested: Earned Value Management (EVM) calculation
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