The Hola Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget: One hundred people attended the party.The costs incurred were:
What is the primary reason for the variance in total costs?

Question

The Hola Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget:  One hundred people attended the party.The costs incurred were:
 What is the primary reason for the variance in total costs?

Quizplus · Accepted Answer

The primary reason for the variance in total costs is that the food cost more than expected. This is evident from the information provided in the budget and actual cost table, where the budgeted cost for food was $2,500, but the actual cost incurred was $3,500, resulting in a variance of $1,000.

The Hola Company Held a Christmas Party