1. Iota Construction

Scenario: Variance Analysis and Performance Evaluation

Data: Iota Construction uses variance analysis to evaluate performance in its building projects. For a recent project, the company reported the following data:

• Budgeted Costs: $1,000,000
• Actual Costs Incurred: $1,200,000
• Planned Completion: 10 months
• Actual Completion: 12 months

Requirements: Calculate the cost variance and schedule variance for Iota Construction's project. Analyze the factors contributing to each variance and their impact on project profitability. Discuss how variance analysis helps Iota Construction improve project cost estimation and management. Evaluate the company's performance efficiency and effectiveness based on the variance analysis results. Recommend strategies for Iota Construction to enhance project performance and profitability in future projects.