A sorority held a party.The sorority prepared the following budget for 25 expected attendees: Twenty-five people attended the party.The costs incurred were:
What is the variance for the room rental cost?

Question

A sorority held a party.The sorority prepared the following budget for 25 expected attendees:  Twenty-five people attended the party.The costs incurred were:
 What is the variance for the room rental cost?

Quizplus · Accepted Answer

To calculate the variance, we need to first calculate the budgeted and actual values for the room rental cost:

Budgeted cost = $425 
Actual cost = $400

Variance = Budgeted cost - Actual cost

Variance = $425 - $400

Variance = $25

Since the actual cost is less than the budgeted cost, this variance is favorable.

Therefore, the answer is choice C, $30 Favorable.

A Sorority Held a Party