Question

A project has 98 activities. At the end of period 4, it has been reported that activity A is 100% completed, activity B is 100% completed, activity C is 50% completed, and activity D is 80% completed. The budgeted costs for these activities are shown in the following table. Activity А B с D Total Budgeted Cost($) 20 15 100 35 According to the project plan, the cumulative budgeted cost at the end of period 4 is $110 and the total project budgeted cost is $320. On the other hand, the cumulative actual cost at the end of period 4 is reported to be $150. Consequently, at the end of period 4, the Cost Variance of the project is

Answer 1

Earned value for the project at end of period 4 = $\sum$ % complete * Budget of that activity = 100% * 20 + 100% * 15 + 50% * 100 + 80% * 35 = 20 + 15 + 50 + 28 = $113

Actual Cost = $150

Cost variance = Earned value - Actual cost = 113 - 150 = (-37)

Answer: (-37)

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