Sara, the PT Department Director, is reviewing her February (budget is calendar year) finance report. She sees that she had budgeted 500 Evaluation exams for the month. She had to estimate her budget in October of the prior year. The report said she had completed 250 Evaluation exams. Each exam has a contribution margin of $30. In January, the department contributed an extra $7,500 in contribution margin above budget.

• A.The volume variance was 250 exams.
• B.Sara's department lost $250 for the month of February.
• C.Sara should explain the variance to her immediate supervisor as a blip. Surely, March will be better.
• D.Year to date, it looks as if the PT department is making more money than budget.