Question

You’re a subcontractor responsible for the re-furbishment of an automobile showroom. The estimated re-furbishment cost is $500 per square foot. The total showroom area that needs to be refurbished is 1,000 square feet. Based on your past experience, you know your team can renovate 100 square feet per week. After 4 weeks, you have 45% of the job completed and you have spent $250,000. Determine the value for each of the terms below:Term ValueBudget At CompletionPlanned ValueEarned ValueActual CostCost VarianceSchedule VarianceCost Performance IndexSchedule Performance IndexEstimate At CompletionEstimate To CompleteVariance At Completion

Answer 1

Step-by-step explanation:

The Earned Value Analysis for each term can be computed as follows:

Term Acronym Formula Value

Budget At Completion BAC =1000×500 500,000

Planned Value PV =400×500 200,000

Earned Value EV =500000×0.45 225,000

Actual Cost AC 250,000

Cost Variance CV
`=EV - AC` -25,000

Schedule Variance SV
`=EV - PV` 25,000

Cost Performance Index CPI
`=EV / AC` 0.9

Schedule Performance Index SPI
`=EV / PV` 1.125

Estimate At Completion EAC
`=BAC / CPI` 555,556

Estimate To Complete ETC
`=EAC - AC` 305,556

Variance At Completion VAC
`=BAC - EAC` -55,556