Question

Problem 5-6 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 70% complete. The planners were only expecting to be 57% through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,427,000 and it was done for only $1,307,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,507,000 but was actually done for $9,007,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,507,000. To date they have spent $5,007,000 on the superstructure. 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: Activity Expected CostExpected Actual Actual cost to Date $ 1,307,000 S 9,007,000 S 5,007,000 S 15,321,000 % complete % complete 100% 100% 7090 100% | 10090 57% Site preparation Pour concrete construction Total $ 1,427,000 $ 10.507.000 $ 8,507,000 S 20,441,000 Budgeted cost of work scheduled: $1,427,000 -$10,507,000 $4,848,990 S 16,782,990 100% of$ 1.427.000 100% of$ 10.507.000 57% of $ 8.507.000 Activity 1 Activity 2 Activity 3 Budgeted cost of work performed: Activity 1 Activity 2 Activity 3 100% of$ 1.427.000 100% of$ 10.507.000 70% of $ 8.507.000 S1,427,000 -$10,507,000 -$5,954,900 $ 17,888,900 Schedule variance=$ 17,888.900-$ 16,782.990=$ 1,105,910 Schedule performance index Cost performance 17,888,900 1.066 16,782,990 17,888,900 1.168 S1.105,910 1.168 15,321,000 Schedule variance Schedule performance index1.066 Cost performance