Fred is the project manager of the NHA project. This project has a BAC of $2,456,900 and is sixty
percent complete. Fred has crashed the project, which has driven the project costs to date to
$1,525,140, but his project is five percent more complete than what was planned. What is the
schedule variance for this project that Fred needs to report to the management?
A.
$176,675
B.
$122,845
C.
-$85,000
D.
-$51,000
Explanation:
There is positive variance of $122,845 on Fred’s project. Variances can be either positive or
negative. Schedule variance (SV) is a measure of schedule performance on a project. The
variance notifies that the schedule is ahead or behind what was planned for this period in time.
The schedule variance is calculated based on the following formula: SV = Earned Value (EV) -Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind
schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value
of 0 indicates that the project is right on target.
Answer option C is incorrect. This is the project’s variance at completion.
Answer option D is incorrect. This is the cost variance for the project.
Answer option A is incorrect. This is not a valid answer for the project.