Tips for this assignment:
Note the first variance has been done for you!
- A favorable budget variance refers to positive variances or gains;
- an unfavorable budget variance describes negative variance, meaning losses and shortfalls;and
- budget variances occur because forecasters are unable to predict the future with complete accuracy.
- Complete the table below.
- Think, what is the variance for each item (percentage and number)?
- Note; when you are completing this table, you will only need to fill in the pink section which will be the difference between the budget and actual.
- Note; some of these numbers will be negative. The first variance has been done for you.
- You must explain your calculationsanswering the questions included after the table