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    Cost and schedule variance calculations

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    The data below describes a housing refurbishment project that a small business contractor worked on: Activity Duration Predecessors Task Budget
    A 3 Days --- $4,920
    B 6 Days --- $7,680
    C 3 Days A $15,140
    D 2 Days B $4,980
    E 3 Days B $5,630
    F 2 Days C, D $2,270

    At the end of the 7th day, this is how the project was going:
    Activity % Complete Actual Cost
    A 100% $4,200
    B 100% $8,740
    C 100% $18,250
    D 55% $2,600
    E 10% $560
    F 0% $0

    (1) I need to know how to find the cost and schedule variance as well as the indexes for the tasks (A through F).
    (2) I also need a brief synopsis of the project's current status.
    Please show all steps used to figure this out (make no assumptions).

    © BrainMass Inc. brainmass.com June 4, 2020, 3:10 am ad1c9bdddf
    https://brainmass.com/statistics/variance/cost-schedule-variance-calculations-502003

    Solution Preview

    1) Let us start with cost variance (CV), the formula for CV is BCWP-ACWP which translates to Budgeted Cost of Work Performed minus Actual Cost of Work Performed. So CV = BCWP-ACWP. So let us now use this formula to solve the CV for the assigned project. To get BCWP we multiply the budget by the actual completion percentage.
    Solve for A = $4,920 - $4,200 = $720
    B = $7680 - $ 8740 = $-1,060
    C = $15,140 - $18,250 = $-3,110
    D = ($4,980 x 55%) - $2,600 = $139
    E = ($5,630 x 10%) - $ 560 = $ 3
    F = ($2,270 x 0%) - $0 = $0
    Next let us tackle the CPI or Cost Performance Index, the formula for CPI is BCWP/ACWP so CPI = BCWP ÷ ACWP.
    Solve for A = $4,920/$4,200 = 1.17
    B = $7680/$8740 = 0.87
    C = $15,140/18,250 = 0.82
    D = $2,739/$2,600 = 1.05
    E = $563/$560 = 1.00
    F = $0/$0 = 0
    Let us now calculate the schedule variance ...

    Solution Summary

    The expert examines cost and schedule variance calculations.

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