Question

Fran Bowen created the following budget: food, 350; transportation,320; housing, 950; clothing,100; personal expenses and recreation, 275. She actually spent298 for food, 337 for transportation,982 for housing, 134 for clothing, and231 for personal expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus.

Answer 1

The variances for each category are calculated and whether it was a surplus or deficit is indicated.

Step-by-step explanation:

To calculate the variance for each category, we need to subtract the actual amount spent from the budgeted amount for each category. Let's calculate the variances:

1. Food: Budgeted amount: $350, Actual spent: $298, Variance: $52 surplus
2. Transportation: Budgeted amount: $320, Actual spent: $337, Variance: $17 deficit
3. Housing: Budgeted amount: $950, Actual spent: $982, Variance: $32 deficit
4. Clothing: Budgeted amount: $100, Actual spent: $134, Variance: $34 deficit
5. Personal expenses and recreation: Budgeted amount: $275, Actual spent: $231, Variance: $44 surplus