The Gotcha Company held a Christmas party. The company expected attendance of 200 persons and prepared the following budget: $\begin{array}{ll}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 500 \
\text { Entertainment } & 800 \
\text { Decorations } & \underline{300} \
\text { Totals } & \$ 2,200
\end{array}$ 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. What is the total budget variance?

Question

Quizplus · Accepted Answer

The total budget variance is calculated as the actual cost ($2,315) minus the budgeted cost ($2,200), resulting in a $115 unfavorable variance.

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