Question

2. You are 4.5 months into a 6-month, $12,000 project with a planned linear spend rate. You have an earned value of $8,500 and you have spent $10,000. What is your EAC? (2 points) 3. The earned value on your project is $15,000, the planned value is $20,000, and the actual cost is $18,000. What is your current schedule variance (in $)? (1 point)

Answer 1

2. The formula for calculating estimate at completion or EAC is as follows,

Estimate at completion(EAC) = actual cost (AC) + Budget at completion (BAC) - Earned value (EV)

We know that actual cost(AC) is $10,000 and budget at completion (BAC) is $12,000 and earned value (EV) is equal to $8,500. Putting these values in our formula we get,

EAC = $10,000 + $12,000 - $8,500

EAC = $22,000 - $8,500

EAC =$13,500.

So the estimate at completion is equal to $13,500.

3. The formula to calculate schedule variance is given as,

schedule variance (SV) = Earned value (EV) - Planned value (PV)

And we know earned value is $15,000 and planned value is $20,000

So the schedule variance will be,

SV = EV - PV

SV = $15,000 - $20,000

SV = -$5,000

So the schedule variance is -$5,000.

5. Now to calculate actual cost when we are given that the cost variance is $50,000 and earned value is $125,000 we can use the following formula,

Cost variance (CV) = Earned value (EV) - Actual cost (AC)

We already know cost variance (CV) and earned value (EV) we can easily calculate actual cost (AC). putting the values of CV and EV in our formula we get,

$50,000 = $125,000 - AC

AC = $125,000 - $50,000

AC = $75,000.

So the actual cost is $75,000.