Project delivery · Original fictional case
Forecast project cost from actual and remaining hours
A project manager has spent hours and fresh estimates to finish three work packages. Calculate the forecast total and the variance from the approved budget.
Related work: Project Management Specialists · O*NET task 21469.
Your source data
| work package | actual hours | remaining hours | usd per hour | budget usd |
|---|---|---|---|---|
| Design | 10 | 4 | 60 | 900 |
| Build | 20 | 12 | 75 | 2200 |
| Test | 8 | 6 | 50 | 800 |
The rules
- Forecast cost = (actual hours + remaining hours) × the package rate. Rates are constant and include all costs in this fixture.
- Remaining hours are estimates to finish, not the original planned hours.
- Positive variance means over budget. Count an over-budget package only when its forecast strictly exceeds its budget.
A method you can reuse
- Design forecasts (10 + 4) × 60 = 840. Build forecasts (20 + 12) × 75 = 2400. Test forecasts (8 + 6) × 50 = 700.
- Add package forecasts and package budgets independently, then subtract the budget total from the forecast total.
- Identify Build as the only over-budget package; underspends on the other packages partly offset its 200 overrun.
A common wrong turn
Adding the original plan to actual cost double-counts completed work. Use an updated estimate of remaining work.
Use it in a handoff
In a handoff, date the estimate-to-complete and name the assumptions behind remaining hours. A forecast is a current estimate, not a guarantee of final cost.
Check your calculation
Enter numbers without currency or percent symbols. A matching result confirms this exercise’s calculation; keep the method in your review note.
See the worked answer
Actual cost so far (USD): 2500
600 + 1500 + 400 = 2500.
Forecast total cost (USD): 3940
840 + 2400 + 700 = 3940.
Forecast minus budget (USD): 40
3940 − (900 + 2200 + 800) = 40.
Over-budget packages: 1
Build exceeds its budget by 200; Design and Test are below budget.
Source and practice material
Occupational context uses the O*NET® 31.0 Database from the U.S. Department of Labor, Employment and Training Administration, under CC BY 4.0. View the occupation.
Skill Workbench selected and adapted the occupational information and added its own fictional cases, calculations, guidance and worksheets. USDOL/ETA has not approved, endorsed or tested these additions. O*NET® is a trademark of USDOL/ETA.