Example 1.

Prelude Caf: November 2016 Budget Summary Report

Prelude Caf uses a significance threshold of $400 and 2% for both revenues and expenses. Calculate the actual to budget variances for each line item and identify significant variances.

	Budget	Actual
Food revenue	$100,000	$100,500
Liquor revenue	$50,000	$49,800
Total revenue	$150,000	$150,300
Food cost	$22,000	$22,500
Liquor cost	$23,000	$22,300
Total COGS	$45,000	$44,800
Fixed and Undistributed costs	$45,000	$44,800

	Variance		Favorability	Sig. in $	Sig. in %
	$	%
Food revenue
Liquor revenue
Food cost
Liquor cost
Fixed and Undistributed costs

Example 2.

Accord Canteen: December 2016 Budget Summary Report

Calculate the actual to budget variances for each line item and identify significant variances.

	Budget	Actual
Revenue	$24,000	$23,420		Significance thresholds		$	%
Food cost	$7,000	$7,200
Fixed labor	$6,000	$6,250		Revenue		$500	3%
Variable labor	$2,000	$2,100		Expenses		$200	2%
Supplies	$600	$550
Repair & Maintenance	$800	$790

	Variance		Favorability	Sig. $	Sig. %
	$	%
Revenue
Food cost
Fixed labor
Variable labor
Supplies
Repair & Maintenance