Question

Sycamore Grove Middle School spent $175,000 on textbooks in the most recent budget cycle. In preparing the budget, budget staff had projected expenses based on assumptions that it would purchase a total of four books per students at a price of $75 on average, for all of the 500 students expected to be enrolled. What factors might have contributed to this observed variance? What additional information would you require to determine what caused the school to experience the variance?

Answer 1

Sycamore Grove Middle School had recent budget cycle of $175,000 and in projected budget the school is going to spend US$150,000 (i.e.4*75*500). Therefore, there is variance of US$25,000 with comparison of recent budget cycle and projected budget cycle.

We require the following details:

1. Exact no. of student in recent budget cycle

2. Cost of books per student in recent budget cycle

3. Cost of each book in recent budget cycle

4. Cost of books per student in projected budget cycle

5. Cost of each book in projected budget cycle