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laiz [17]
3 years ago
11

A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be run

ning very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 60 percent complete. The planners were expecting to be only 50 percent through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,420,000 and it was done for only $1,300,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,500,000 but was actually done for $9,000,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,500,000. To date they have spent $5,000,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to date.
Mathematics
1 answer:
Alecsey [184]3 years ago
7 0

Answer:

Scheduled Variance = $850,000.00

Schedule Performance Index = 1.05

Cost Performance Index = 1.11

Step-by-step explanation:

Note: See the attached excel file for the calculations of Total Actual Cost to Date, Budgeted Cost of Work Scheduled (BCWS), and Budgeted Cost of Work Performed (BCWP).

From the attached excel file, we have:

Total Actual Cost to Date = $15,300,000

Total BCWS = $16,170,000

Total BCWP = $17,020,000

Therefore, we have:

Scheduled Variance = Total BCWP - Total BCWS = $17,020,000 - $16,170,000 = $850,000.00

Schedule Performance Index = Total BCWP / Total BCWS = $17,020,000 / $16,170,000 = 1.05

Cost Variance = Total BCWP - Total actual cost to date = $17,020,000 - $15,300,000 = $1,720,000

Cost Performance Index = Total BCWP / Total actual cost to date = $17,020,000 / $15,300,000 = 1.11

Download xlsx
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