Exercise 3: Variance Budgeting: The finance director has also been looking at how effective budget planning has been within the business and has given you information on budget estimates and actual expenditure. You need to calculate any variances indicating whether they are favourable or unfavourable. You have been given a template to help you with this exercise. Budgeted Actual Sales 120,000 97,500 Cost of Sales 75,000 80,000 Expenses: Rent 5,000 6,500 Wages 10,000 8,000 Advertising & 5,000 4,000 Promotion Travel 1,000 1,500 Depreciation 1,800 2,200 Bank charges & 0 650 interest Insurance 500 Repairs 0 1,500 Accounting fees 0 700