Question

Fran Powers created the following budget and reported the actual spending listed. Calculate the variance for each of these categories and indicate whether it was a deficit or a surplus.

Item budgeted actual variance deficit/surplus
Food $350 $298 _______ ___________
Transportation 320 337 _______ ___________
Housing 950 982 _______ ___________
Clothing 100 134 _______ __________
Personal 275 231 _______ ___________

Answer 1

Answer:

To find the answer, we simply arithmetically operate the values, and if the result is negative, then we have a deficit, and if the result is positive, then we have a surplus:

Food $350 - $298 = $62 surplus

Transportation $320 - $337 = -17 deficit

Housing $950 - $982 = -32 deficit

Clothing $100 - $134 = -34 deficit

Personal $275 - $231 = $44 surplus