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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).

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.

\$2.19