You are the project manager of the GHY project. Your project has a BAC of $675,000 and is forty
percent complete though you were supposed to be forty-five percent complete. Due to some
errors early in the project, you had to spend $278,000 of your project’s budget to reach this point.
Management is asking for a variance report. What part of your project has the largest variance?

A.
Cost, with a variance of -$8,000

B.
Schedule, with a variance of -$33,750

C.
Cost, with a variance of $278,000

D.
Schedule, with a variance of -$20,000

Explanation:
Your schedule variance is -$33,750. You can find this by using the formula earned value-minus
planned.
Answer option C is incorrect. Cost is not the largest variance in the project.
Answer option A is incorrect. Cost is not the largest variance in the project (it is -$8,000).
Answer option D is incorrect. -$20,000 is the variance at completion for the project.