The Hola Company held a Christmas party.The company expected attendance of 100 persons and prepared the following budget: $\begin{array}{lr}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 500 \
\text { Entertainment } & 800 \
\text { Decorations } & 300 \
& \
\text { Total s } & \$ 2,200
\end{array}$ After all bills for the party were paid, the total came to $2,315.Details are: $575 for hotel room rental; $640 for food; $750 for entertainment; and $350 for decorations.One hundred persons attended the party. What is the main reason for the unfavorable total budget variance?

Question

Quizplus · Accepted Answer

The main reason for the unfavorable total budget variance is the increase in food costs, which exceeded the budget by $140 ($640 actual vs. $500 budgeted), representing the largest deviation among the categories compared to their respective budgets.

The Hola Company Held a Christmas Party After All Bills for the Party Were Paid, the Total