The following two items are from Marcia White’s “Dining Out” expense c

The following two items are from Marcia White’s “Dining Out” expense category:
1. January monthly variance = $25 (favorable);
2. February cumulative variance = -$10 (unfavorable).

If Marcia budgeted $85 a month for this activity, we know that she
A)

spent $60 in January and $95 in February.
B)

spent $60 in January and $120 in February.
C)

can bring the activity back within budget by spending $85 in March.
D)

has not budgeted properly.

ANSWER

B