A method for controlling a powertrain includes operating an engine substantially at wide open throttle, monitoring an output torque request, controlling the engine input torque by controlling a valve overlap setting for a cylinder of the engine based upon the output torque request wherein controlling the valve overlap setting for the cylinder modulates a residual burnt gas fraction within the cylinder utilizing at least one of an extended low slope portion of an exhaust valve closing curve and an extended low slope portion of an intake valve opening curve, and controlling an electric machine input torque based upon the output torque request and a time-lag difference between the output torque request and the controlled engine input torque.