The 6 monthly payment application for the construction of a $70,000,000 University dormitory is analyzed and the summary accounting show: the budgeted cost of work performed is $14,500,000, while the actual cost of work performed is $14,750,000. Calculate the cost status of the project.

Solution: Financial project status is analyzed using the following equations:

BCWS = Budgeted Cost of Work Scheduled = planned costs

ACWP = Actual Cost of Work Performed = actual spent

BCWP = Budgeted Cost of Work Performed = Earned Value

Schedule Variance = BCWP - BCWS

Cost Variance = BCWP - ACWP

Cost Variance = BCWP - ACWP

Cost Variance = $14,500,000 - $14,750,000 =   - $250,000 (over budget)

(1 - ($14,500,000 ÷ $14,750,000)) x 100 = 1.69% over budget