How to compare actual with budget
Set the actual figures beside the budget, line by line. The difference on each line is the variance.
Task 1Line by line4 questions
At the end of the month the actual results are set beside the budget. The difference on each line is called a variance.
Larkfield made and sold 2,000 candles in May, exactly as planned. The money did not go exactly as planned.
| Line | Budget | Actual |
|---|---|---|
| Sales revenue | 30,000.00 | 28,800.00 |
| Materials | 7,000.00 | 7,350.00 |
| Labour | 4,000.00 | 3,900.00 |
| Variable overheads | 1,000.00 | 1,000.00 |
| Fixed overheads | 13,500.00 | 13,770.00 |
The size of a variance is the bigger figure less the smaller one. It is written without a minus sign.
Task 2The bottom line3 questions
Task 3A variance as a percentage2 questions