Variance During the winter months, the New York City department of Social Services purchases blankets for use at shelters throughout the city. In previous years, the department had purchased blankets for 15 different shelters at a price of $7.50 per blanket, expecting that each shelter would use 14 new blankets. The department budgeted a similar amount this year; however, at the end of the year they discovered that they had spent more on blankets than anticipated. They had actually spent $1,989, purchased 234 blankets, and provided blankets to 18 shelters. Fill in the following blanks: [Note: Be sure to indicate unfavorable variances with a negative sign, e.g. -54.67. Do not use parentheses. Round your numbers to TWO decimal places, e.g. 54.12.] A) The volume variance is $ _________________ B) The quantity variance is $ _________________ C) The price variance is $ ____________________ D) Of the three variances you calculated, which one contributed the most to the total variance? 1. Volume Variance _______ 2. Quantity Variance ______ 3. Price Variance _______ Write the number corresponding to the correct option, i.e. 1 or 2 or 3 E) On average, how many blankets did each shelter actually get? __________ F) What was the actual average price of a blank
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Variance
During the winter months, the New York City department of Social Services purchases blankets for use at shelters throughout the city. In previous years, the department had purchased blankets for 15 different shelters at a price of $7.50 per blanket, expecting that each shelter would use 14 new blankets. The department budgeted a similar amount this year; however, at the end of the year they discovered that they had spent more on blankets than anticipated. They had actually spent $1,989, purchased 234 blankets, and provided blankets to 18 shelters.
Fill in the following blanks:
[Note: Be sure to indicate unfavorable variances with a negative sign, e.g. -54.67. Do not use parentheses. Round your numbers to TWO decimal places, e.g. 54.12.]
A) The volume variance is $ _________________
B) The quantity variance is $ _________________
C) The price variance is $ ____________________
D) Of the three variances you calculated, which one contributed the most to the total variance?
1. Volume Variance _______
2. Quantity Variance ______
3. Price Variance _______
Write the number corresponding to the correct option, i.e. 1 or 2 or 3
E) On average, how many blankets did each shelter actually get? __________
F) What was the actual average price of a blanket? ___________
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