A fraternity held a party.The fraternity prepared the following budget for 25 expected attendees: Twenty-five people attended the party.The following costs were incurred:
What is the variance for total costs?

Question

A fraternity held a party.The fraternity prepared the following budget for 25 expected attendees:  Twenty-five people attended the party.The following costs were incurred:
 What is the variance for total costs?

Quizplus · Accepted Answer

The budget shows that the expected total cost was $325 (25 x $13). However, the actual total cost was $360, which is $35 more than the budgeted amount. Therefore, the variance is $35 unfavorable.

A Fraternity Held a Party