Question

2 Problem 5-6 (Algo) A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 65% complete. The planners were expecting to be only58 % through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,415,000 and it was done for only $1,295,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,495,000 but was actually done for $8,995,000 The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,495,000 To date, they have spent $4.995,000 on the superstructure eoos Prot eferences Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost performance index

Answer 1

Answer -

As per given information :

Activity	Expected Cost	Expected % Complete	Actual % Complete	Actual Cost to Date
Activity 1	$1415000	100%	100%	$1295000
Activity 2	$10495000	100%	100%	$8995000
Activity 3	$8495000	58%	65%	$4995000
Total	$20405000			$15285000

Budgeted Cost of Work Scheduled (BCWS)

Activity 1	100% of $1415000	$1415000
Activity 2	100% of $10495000	$10495000
Activity 3	58% of $8495000	$4927100
Total		$16837100

Budgeted Cost of Work Performed (BCWP)

Activity 1	100% of $1415000	$1415000
Activity 2	100% of $10495000	$10495000
Activity 3	65% of $8495000	$5521750
Total		$17431750

So,

Scheduled Variance = Total BCWP - Total BCWS

Scheduled Variance = $17431750 - $16837100

Scheduled Variance = $594650

Then,

Schedule Performance Index = Total BCWP / Total BCWS

Schedule Performance Index = $17431750 / $16837100

Schedule Performance Index = 1.035

And

Cost Variance = Total BCWP - Total actual cost to date

Cost Variance = $17431750 - $15285000

Cost Variance = $2146750

Then,

Cost Performance Index = Total BCWP / Total actual cost to date

Cost Performance Index = $17431750 / $15285000

Cost Performance Index = 1.140

So,

Scheduled Variance	$594650
Schedule Performance Index	1.035
Cost Performance Index	1.140