The Findley Company held a Groundhog Day party. The company expected attendance of 200 persons and prepared the following budget: $\begin{array}{ll}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 500 \
\text { Entertainment } & 800 \
\text { Decorations } & \underline{300} \
\text { Totals } & \underline{\$ 2,200}
\end{array}$ 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. Two hundred persons attended the party. Which of the following costs deserves further examination assuming the Findley Company uses the management- by- exception rule?

Question

Quizplus · Accepted Answer

The food cost exceeded the budget by $140, which is a significant variance compared to other costs.

The Findley Company Held a Groundhog Day Party After All Bills for the Party Were Paid, the Total