Answer:
The question has some details missing ; it continues by saying; Calculate the schedule variance, schedule performance index, cost variance and cost (actually value in this case) performance index. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your dollar amounts to the nearest whole number. Round your "performance index" values to 3 decimal places.)
Explanation:
- Let the three activities be 1, 2 and 3 respectively.
- Firstly, we compute the budgeted revenue of the project till the 33rd day. In other to do this, we need to compute budgeted revenue of each activity.
- Hence, Budgeted revenue of work completed for Activity 1= Budgeted revenue X Planned completion till date
Budgeted revenue of work completed for Activity 2= Budgeted revenue X Planned completion till date
Budgeted revenue of work completed for Activity 3= Budgeted revenue X Planned completion till date
Thus, budgeted revenue of the project = Budgeted rev. of Activity 1 + Budgeted rev. of Activity 2 + Budgeted rev. of Activity 3
- = 26000 + 128350 + 0 = $154350
Budgeted revenue of work performed till 33rd day,
Budgeted revenue of work performed for Activity 1 = Budgeted revenue X actual completion date
= 26000 X 91% = $23660
Budgeted revenue of work performed for Activity 2= Budgeted revenue X actual completion date
= 151000 X 54% = $81540
Budgeted revenue for work performed for Activity 3 = Budgeted revenue X actual completion date
= 52000 X 0% = $0
Thus, budgeted revenue of work performed project = Budgeted rev. of Activity 1 + Budgeted rev. of Activity 2 + Budgeted rev. of Activity 3
= 23660 + 81540 + 0 = $105,200
Schedule variance = Budgeted revenue of work performed - budgeted revenue of work scheduled = 105200 - 154350 = - $49150
The values gotten is an indication that the project is behind schedule.
Schedule performance index = Budgeted revenue of work performed/ budgeted revenue of work scheduled = 105200 / 154350 = 0.6816
A scheduled performance index of less than 1 also indicates project is behind schedule.
Cost variance = Budgeted revenue of work performed - Actual revenue = 105200 -174000 = -$68800
Cost performance index = Budgeted revenue of work performed / Actual revenue = 105200/ 174000 = 0.6046
A cost performance index of less than 1 also indicates project is performing better than planned performance in terms of revenue
