Personal Finance 1st Edition by Jack R. Kapoor

Exercise 24

Determining Budget Variances. Fran Bowen created the following budget:

Food, $350	Clothing, $100
Transportation, $320	Personal expenses and recreation, $275
Housing$950

She actually spent $298 for food, $337 for transportation, $982 for housing, $134 for clothing, and $231 for personal expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus. (Obj. 4)

Step 1 of 2

The Budget created is as follows:

Budget

Food	$350
Transportation	$320
Housing	$950
Clothing	$100
Personal expenses and recreation	$275

Actual Expenditure

Food	$298
Transportation	$337
Housing	$982
Clothing	$134
Personal expenses and recreation	$231