Final answer:
A budget variance can occur due to changes in contract labor, lack of funds, or changes in payroll, all of which can impact the variable costs within an organization. Option d.
Step-by-step explanation:
A typical reason for a budget variance can be an increase in contract labor, a lack of funds for a budgeted expense, or a decrease in payroll. All of these (d) scenarios can lead to a discrepancy between what was planned or budgeted for and what actually occurs financially within an organization. Budget variances can therefore be the result of changes in variable costs such as labor, which fluctuate with the level of output or the level of activity in the company. An increase in variable inputs, like contract labor, will raise costs, leading to a potential budget variance if not initially factored into the budget. Similarly, decreases in payroll can produce savings that result in a positive variance. Budget variances require close analysis to understand their impact on a company's financial performance and to make appropriate adjustments to future budgets or operations.