Variance analysis

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Sales | | | | | Oct | £40,000 | £38,500 | £1500 favourable | There may have been a decrease in the number of competitors in the market or they could have advertised really well. | Nov | £45,000 | £47,000 | £2000 adverse | There may have been an increase in competition in the marketAnd a decrease in demand for the products | Dec | £52,000 | £56,000 | £4000 adverse | There may have been an increase in competition in the marketAnd a decrease in demand for the products |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Raw materials | | | | | Oct | £6000 | £5,700 | £300 favourable | They could’ve found a cheaper supplier or there may be a drop in sales | Nov | £8000 | £8,100 | £100 adverse | They may have overspent on raw materials or made more sales meaning they needed to use more electricity and raw materials | Dec | £8000 | £8,500 | £500 adverse | They may have overspent on raw materials or made more sales meaning they needed to use more electricity and raw materials |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Wages | | | | | Oct | £6000 | £5,600 | £400 favourable | This could be because they didn’t need seasonal staff in October meaning that they didn’t need to give employees as many hours as they thought. | Nov | £6,500 | £6,350 | £150 favourable | This could be because they didn’t need seasonal staff in November meaning that they didn’t need to give employees as many hours as they thought. | Dec | £6,500 | £6,559 | £59 adverse | They may have gone over budget due to needing more seasonal for Christmas therefore to cope with the demand they will give staff more hours. |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Salaries | | | | | Oct | £15,000 | £14,500 | £500 favourable | The salaries may be favourable if a contracted member of staff left the Crab Apple Garden Centre. | Nov | £15,000 | £15,500 | £500 adverse | They may have gone over budget if they gave a current member of staff a contract. | Dec | £15,000 | £15,500 | £500 adverse | They may have gone over budget if they gave a current member of staff a contract. |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Advertising | | | | | Oct | £200 | £220 | £20 adverse | They either had to pay for additional advertising or the advertising cost more than they thought. | Nov | £200 | £220 | £20 adverse | They either had to pay for additional advertising or the advertising cost more than they thought. | Dec | £200 | £250 | £50 adverse | They either had to pay for additional advertising or the advertising cost more than they thought. |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Insurance | | | | | Oct | £300 | £400 | £100 adverse | They may have gone over because something may have gone wrong such as a broken light which would force them to pay more on their insurance. | Nov | £300 | £400 | £100 adverse | They may have gone over because something may have gone wrong such as a broken light which would force them to pay more on their insurance. | Dec | £300 | £400 | £100 adverse | They may have gone over because something may have gone wrong such as a broken light which would force them to pay more on their insurance. |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Fuel and vehicle maintenance | | | | | Oct | £400 | £500 | £100 adverse | They may have had to make more deliveries than usual therefore they would need to spend more on petrol. | Nov | £400 | £600 | £200 adverse | They may have had to make more deliveries than usual therefore they would need to spend more on petrol. | Dec | £400 | £600 | £200 adverse | They may have had to make more deliveries than usual therefore they would need to spend more on petrol. |

Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Utilities | | | | | Oct | £300 | £350 | £50 adverse | They may have gone over budget because they may have needed to use more water than they originally thought. | Nov | £300 | £380 | £80 adverse | They may have gone over budget because they may have needed to use more water than they originally thought. | Dec | £300 | £350 | £50 adverse | They may have gone over budget because they may have need