The Findlay Company held an Independence Day party. The company expected attendance of 200 persons and prepared the following budget: $\begin{array}{ll}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 400 \
\text { Entertainment } & \$ 00 \
\text { Decorations } & \$ 300 \
\text { Totals } & \$ 2,100
\end{array}$ 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. Two hundred persons attended the party. What is the variance in food?
A) $240 unfavorable is the food variance.
B) $70 favorable is the food variance.
C) $25 favorable is the food variance.
D) $70 unfavorable is the food variance.

Question

Quizplus · Accepted Answer

The budgeted amount for food was $400, and the actual amount spent was $640. The variance is $640 - $400 = $240 unfavorable.

The Findlay Company Held an Independence Day Party After All Bills for the Party Were Paid, the Total