Refer back to the sample project examined in module two and imagine that everything is executed perfectly. Imagine that you have just now come to the end of time period 16. Activity 4-5 is now completed as scheduled, and Activity 3-6 has also just completed, two periods ahead of schedule. Imagine that Resource A cost $6,000 for each period it was active on Activity 3-6: 5 periods, not the 7 periods at $5,000 per period expected. You are now ahead. In answering the questions below, remember that Resource A has a planned cost of $5,000 per period of use, and Resource B has a planned cost of $3,000 per period of use.

Using the methods presented in this module, answer the following questions.

1. What is the cost variance?

2. What is the new forecasted total cost at completion if you use Method 1?

3 2 3 9 B 7 A A 1 2 9 A 5 4 A 5 B A 1-2 1-4 3-6 5-6 Resource Type B 2-3 4-5 01 2345 6 7 8 9 10 11 12 13 14 15 16 17 10 10 20 21 22 23 24 25 26 27 28 29 30 Jan 16 Nov 16 Dec 16 Jan 17 Sept 16 May 17 April 18 July 17 Aug 17