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Analyze budget variances for a department with the following data: Category Budgeted Amount ($) Actual Amount ($) Personnel 240,000 250,000 Supplies 55,000 52,000 Utilities 40,000
Analyze budget variances for a department with the following data:
| Category | Budgeted Amount ($) | Actual Amount ($) |
|---|---|---|
| Personnel | 240,000 | 250,000 |
| Supplies | 55,000 | 52,000 |
| Utilities | 40,000 | 42,000 |
| Maintenance | 45,000 | 48,000 |
Requirements:
- Calculate the variance for each budget category.
- Analyze the variances into favorable and unfavorable components.
- Present the analysis in a budget variance report.
- Discuss potential reasons for budget variances.
- Identify implications for future planning.
- Provide recommendations for improving budget accuracy.
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Survey of Accounting
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
5th edition
1259631125, 978-1259631122
