Question

the following is a list of a companys budget. column 1 shows the categories for which a budget amount has been determined. the budgeted amounts are shown in column 2, and the actual amounts are shown in column 3. complete the calculations by calculating the variance between the projected (budgeted) and actual amounts (column 4) and the percentage increase or decrease (column 5). budget category projected actual variance % +or - sales $680,000 $720,000 merchandise returns 11,000 12,500 cost of goods 229,400 240,000 operating expenses 52,000 46,500 administrative costs 34,000 31,500 marketing expenses 306,000 350,500 net profit 47,600 39,000 oe=-3500

Explanation:

Step1: Calculate variance

Variance = Actual - Projected

Step2: Calculate percentage change

Percentage change = $\frac{\text{Variance}}{\text{Projected}}\times100$

Budget Category	Projected	Actual	Variance	% + or -
Returns	$11000$	$12500$	$12500 - 11000 = 1500$	$\frac{1500}{11000}\times 100\approx 13.64\%$
Cost of Goods	$229400$	$240000$	$240000 - 229400=10600$	$\frac{10600}{229400}\times 100\approx 4.62\%$
Operating Expenses	$52000$	$46500$	$46500 - 52000=- 5500$	$\frac{-5500}{52000}\times 100\approx - 10.58\%$
Administrative Costs	$34000$	$31500$	$31500 - 34000=-2500$	$\frac{-2500}{34000}\times 100\approx - 7.35\%$
Marketing Expenses	$306000$	$350500$	$350500 - 306000 = 44500$	$\frac{44500}{306000}\times 100\approx 14.54\%$
Net Profit	$47600$	$39000$	$39000 - 47600=-8600$	$\frac{-8600}{47600}\times 100\approx - 18.07\%$

Answer:

Budget Category	Projected	Actual	Variance	% + or -
Returns	$11000$	$12500$	$1500$	$13.64\%$
Cost of Goods	$229400$	$240000$	$10600$	$4.62\%$
Operating Expenses	$52000$	$46500$	$-5500$	$-10.58\%$
Administrative Costs	$34000$	$31500$	$-2500$	$-7.35\%$
Marketing Expenses	$306000$	$350500$	$44500$	$14.54\%$
Net Profit	$47600$	$39000$	$-8600$	$-18.07\%$