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What is the variance at completion for this project?

1. A project had a budget of $750,000 and was completed on time. The project expenses, however,
were 15 percent more than what the project called for. What is the variance at completion for this
project?
A. Impossible to know-not enough information
B. $112,500
C. $637,500
D. $750,000

2. Linda is a project manager for a large insurance company. Her current project is to organize all of
the paper files to match the electronic structure of the IT system's servers. It is not an exciting project.
Linda has just completed a performance report for her project. Her cost of performance index (CPI) is
listed as .79, and her schedule performance index (SPI) is .69. Joey, her manager, has responded with a
change request. Why?
A. The project is not performing well, so a change request is submitted to the project manager
B. The project is not performing well, so a change request is made to cancel the project
C. The project is not performing well, so Joey will likely issue a change request to remove Linda
from the project
D. The project is performing well, so Joey will likely be adding requirements to the project scope.

Solution Preview

1. The answer is B. The project over budget cost = $750,000 * 15% = $112,500. The Actual Cost (total project cost) = ...

Solution Summary

The variance of completion for this project is determined in the solution.

$2.19