After you graduate one of your colleagues, a friend who has graduated from a far lower quality master's program than yours, calls you. Your friend is managing the laundry department in a local hospital.

Recently the department has been underperforming. Your friend, who hasn't been blessed with the high quality financial instruction that you have, is having trouble understanding why the laundry department is not meeting its budget. You offer to help.

 

Initially you're given the department's budgeted and actual performance. Budgeted expenses are $13,000 and actual expenses total $16,512. What's the expense variance?

 

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The expense variance can be calculated by subtracting the budgeted expenses from the actual expenses ... View the full answer