Question

Piano Company's costs were over budget by $50,615. The Piano Company is divided into two regions. The first region's costs were over budget by $36,236.

Required:

A. Determine the amount that the second region's cost was over or under budget. Enter the answer as a positive number.
$ ______

Answer 1

To find the second region's over or under budget amount, subtract the first region's overage ($36,236) from the total overage ($50,615). The result is that the second region is over budget by $14,379.

Step-by-step explanation:

If the Piano Company's costs were over budget by $50,615, and the first region's costs were over budget by $36,236, we can determine the second region's over or under budget amount by subtracting the first region's overage from the total overage.

To calculate:

• Total overage for both regions = $50,615
• First region's overage = $36,236
• Second region's overage = Total overage - First region's overage
• Second region's overage = $50,615 - $36,236
• Second region's overage = $14,379

The second region's costs were over budget by $14,379.