A project has 80 activities. At the end of period 11, activity A is 100% complet

Question

A project has 80 activities. At the end of period 11, activity A is 100% completed. activity B is 70% completed, activity C is 60% completed, and activity D is 90% completed. The budgeted costs for these activities are shown below. Activity Total Budgeted Cost ($) 120,000 55,000 90,000 140,000 According to the project plan, the cumulative budgeted cost at the end of period 11 is $372,000 and the total project budgeted cost is $5,300,000 The cumulative actual cost at the end of period 11 is reported to be $369,000 NOTE: Do not use any comma in your answer You have to perform calculation to evaluate the project performance at the end of period 11 (1) The value of the Cost Variance is 30500 dollars (2) The value of the Schedule Variance is 33500 dollars (3) The value of the Schedule Performance Index is 0.91 (4) The value of the Cost Performance Index is0.92 (5) Assuming the project will continue with CPI of 1, the forecasted project cost at completion is 6) Assuming the project will continue at the CPI observed at the end of period 11, the forecasted project cost at completion is dollars dollars

Explanation / Answer

SV = EV - PV
CV = EV - AC

(1)

EV up to period 11 = 120,000 x 100% + 55,000 x 70% + 90,000 x 60% + 140,000 x 90% = $338,500

AC up to period 11 = $369,000

So, CV = EV - AC = $338,500 - $369,000 = - 30500

(2)

PV up to period 11 = $372,000.

So, SV = EV - PV = $338,500 - $372,000 = - 33500

(3)

SPI = EV / PV = 338500 / 372000 = 0.9099

(4)

CPI = EV / AC = 338500 / 369000 = 0.9173

(5)

BAC = $5,300,000

EAC = AC uo to 11 + (BAC - EV up to 11) = 369000 + (5300000 - 338500) = 5330500

(6)

EAC = BAC / CPI = 5300000 / 0.9173 = 5777548

(7)

SV is negative, so the project is delayed.

(8)

CV is negative, so the project is overbudget.

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