The Helium Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget:
$\begin{array}{ll}
\text { Hotel room rental } & \$ 500 \
\text { Food } & 500 \
\text { Entertainment } & 800 \
\text { Decorations } & 300\
\text { Total Costs }&\$2,100
\end{array}$
One hundred people attended the party.The following costs were incurred:
$\begin{array}{ll}
\text { Hotel room rental } & \$ 575 \
\text { Food } & 640 \
\text { Entertainment } & 750 \
\text { Decorations } & 350\
\text { Total Costs }&\$2,315
\end{array}$
What is the variance for total costs?

Question

Quizplus · Accepted Answer

The variance for total costs is calculated by subtracting the budgeted costs from the actual costs: $2,315 (actual) - $2,100 (budgeted) = $215 Unfavorable, because the actual costs exceeded the budgeted costs.

The Helium Company Held a Christmas Party One Hundred People Attended the Party