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Analyze the budget variances for Google LLC's marketing department for the fiscal year 20XX. The budgeted marketing expenses were $1.2 million, while the actual expenses

Analyze the budget variances for Google LLC's marketing department for the fiscal year 20XX. The budgeted marketing expenses were $1.2 million, while the actual expenses amounted to $1.5 million. Calculate the spending variance, efficiency variance, and volume variance. Interpret each variance and identify potential causes for the deviations from the budget.

Variance Type

Calculation

Amount ($)

Spending Variance

Actual Expenses - Budgeted Expenses


Efficiency Variance

(Actual Activity - Standard Activity) x Standard Rate


Volume Variance

(Actual Activity - Standard Activity) x Standard Rate


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