Question

Maria's initial project budget was increased from $16,000 to $18,000. What was the variance from the initial budget?

A. -12.50%
B. 88%
C. 11%
D. 12.50%

Answer 1

the correct answer to the question is d 12.50

Answer 2

D. 12.50%

Step-by-step explanation:

Initial budgeted amount = $16,000

Final budgeted amount = $18,000

Change in amount budgeted = $18,000 - $16,000 = $2,000

Variance from initial budget is the ratio of the change in the budgeted amount to the initial amount budgeted expressed as a percentage.

Therefore,

Variance = (2000/16000) × 100%

= 12.5%

Option D. 12.50% is right.