Question
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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