Consider the project plan diagrammed below. There are six activities and two resources available, one of type A and one of type B, and they are available through the entire course of the project. The time and resource required to complete each activity is shown between nodes. For example, the activity that connects node one with node two takes nine time periods to execute, and it takes one unit of resource A the entire time it's active. With the assumption that you only have one unit of resource A and one unit of resource B available continuously throughout the entire project, the resource loaded schedule shown below was developed. Note this constraint also determines the critical sequence of activities, which is indicated with red arrows. Resource A has a planned cost of $5000 per period, and Resource B has a planned cost of $3000 per period.Now imagine that you have now reached the beginning of time period 17 in this project. Activity 4-5 is completed as scheduled, and Activity 3-6 is also finished, two periods ahead of schedule. Resource A was expected to cost $5,000 per period for 7 periods. However, the actual cost was $6,000 per period for 5 periods. This means 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. Respond to the prompts at right. What is the cost variance?

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