Q6. Cost Budget Analysis (5 Marks)

Below is a Cost Budget Analysis for a Project Team. Each member in the team has their own rate (which is the same with its budget or cost) and the time to complete the activity (duration). Based on the table below, as a Project Manager, analyze the figures (in US Dollar - $) and answer the following:

Table A

Project Team	Activity	Cost			Budget
		Rate	Amount	Duration	Amount	Rate	Duration
Masthan	Planning and Analysis	7.15	500.5	70 hr	552	7.15	80 hr
Mangesh	Design and Development	9.55	6658	700 hr	6207.5	9.55	650 hr
Deeba	Testing	8.05	1127	140 hr	1275	8.50	150 hr
Raja	Implementation	6.50	2600	400 hr	2060	6.50	400 hr
Saravanan	Maintenance	6.30	2250	350 hr	2108	6.20	340 hr
TOTAL

1. The table above has 4 amount that are incorrect. Analyze, identify by solving each row/activity and re-write the entire table with the correct amount.

Table B

Project Team	Activity	Cost			Budget
		Rate	Amount	Duration	Amount	Rate	Duration
Masthan
Mangesh
Deeba
Raja
Saravanan
TOTAL

Marking Scheme: 4 amount x 0.25 = 1 Mark

2. There are 2 rate issues in Table A. Identify those issues and write your answer on the space provided. 1 Mark

3. Solve the total amount for budget and cost after the rate issues are fixed. Write your answer in Table B. 2 Marks

4. Is the Cost Budget Analysis considered a favorable or unfavorable variance, why?

Note: Consider the total amount answer in question c.

Answer: ________________________________________ 0.5 mark

Why? __________________________________________ 0.5 mark