Allen works as a project manager of the NHY project. This project is scheduled to last for two
years and has a BAC of $5,400,000. He is currently 45 percent complete with this project, though
he is supposed to be at his second milestone, which accounts for half of the project completion.
There have been some errors in the project, which have caused Allen to spend $2,093,754. What
is this project’s schedule variance?

A.
– $210,000

B.
– $720,000

C.
– $250,000

D.
– $270,000

Explanation:
The schedule variance can be found by subtracting the planned value from the earned value. In
this instance, it is
EV = (0.45 * 5,400,000)
= 2,430,000
PV = (0.50 * 5,400,000)
= 2,700,000
SV = EV – PV
= 2,430,000 – 2,700,000
= – $270,000
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.