1. The problem asks: What is variance in completing a project? 2. Variance in project management measures the difference between the planned progress or cost and the actual progress or cost. 3. The formula for variance is: $$\text{Variance} = \text{Actual Value} - \text{Planned Value}$$ 4. Important rules: - A positive variance means the project is ahead or under budget. - A negative variance means the project is behind or over budget. 5. For example, if the planned cost was 1000 and the actual cost was 1200, then: $$\text{Variance} = 1200 - 1000 = 200$$ This means the project went over budget by 200. 6. Variance helps project managers understand deviations and take corrective actions.