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BIZZ0 estimated that income for January would be $53,500 and expenses would be $37,250. The actual income was $48,500 and the actual expenses were $35,000. What is the variance for the balance (income − expenses)?

User Imgkl
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1 Answer

3 votes

Answer:

the variance for the balance is $2,750 favorable

Step-by-step explanation:

The computation of the variance for the balance is shown below:

= Income - expenses

= (Estimated income - actual income) - (estimated expenses - actual expenses)

= ($53,500 - $48,500) - ($37,250 - $35,000)

= $5,000 - $2,250

= $2,750 favorable

Hence, the variance for the balance is $2,750 favorable

We simply applied the above formula so that the correct value could come

And, the same is to be considered

User Robin Coe
by
8.1k points
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