I need the following questions answer:

1. What are budget variances and what each tells you?

2. What needs to be investigated to determine the reasons for the variance(s) and why?

3. Conclusion of the above reminding the readers what it variances are and making a final point without introducing new information The below information will be needed to answer the above questions

Peyton Approved Budget Variance Report For the Year Ended Static Budget Variance Unfavorable Favorable/ Actual Results Direct materials variances Cost/price variance Efficiency variance Total direct materials variance 480,500 472,750 (7,750) Favorable Direct labor variances Cost /price variance Efficiency variance 608 000 33,000 Favorable 528 0oo 480 000 (48,000) Unfavorable 1,023,000 1,008,000 (15,000) Unfavorable Total direct labor variance