1. Analyze the budget variance report you prepared in Step 4. What variances do you think should be investigated? Why?

(Some ways to analyze variances:

Dollar amount Percentages

When answering these questions, think about two ways to analyze variances, which are by dollar amount and by percentage. )

B D E F G H 1 2 3 City of Somerville, MA: General Government Budgeted vs. Actual Expenditures (hypothetical) For Year Ended December 31, 2016 2016 4 $ $ $ Budget 21,590 $ 16,800 $ 38,390 $ Variance Variance Actual $ % 20,263 $ 1,327 6.15%A 17,224 $ (424) -2.5296 37,487 $ 903 2.35% 5 Expenditure (Item Class) 6 Miscellaneous line item 7 Repairs and maintenance expense 8 Total expenditures 9 10 11 12 13 14