Answer and Explanation:
Given:
Actual time (AT) = 70 days
Actual cost (AC) = $78,000
Scheduled cost (SC) = $84,000
Earned value (EV) = $81,000
Computation of cost variance:
Cost variance = Earned value - Actual cost
Cost variance = $81,000 - $78,000
Cost variance = $3,000
Computation of schedule variance:
Schedule variance = Earned value - Scheduled cost
Schedule variance = $81,000 - $84,000
Schedule variance = - $3,000
Computation of Cost schedule Index (CSI):
Cost schedule Index = EV² / (AC × SC)
Cost schedule Index = ($81,000)² / ($78,000 × $84,000)
Cost schedule Index = 1.00137363
Cost schedule Index = 1.001 (Approx)
Computation of time variance:
Time variance = (AT × CSI) - AT
Time variance = (70 × 1.001) - 70
Time variance = (70.07) - 70
Time variance = 0.07 days
