Calculate and Analyze Budget Variance

The following table shows a portion of a health information management (HIM) department’s supplies and materials from the previous year.

Prior-year Expenditures
Budget vs. Actual
Item Budget Amount Amount Spent
Supplies $1,200 $1,000
Travel $2,000 $2,500
Conference Fees $1,000 $1,200
Membership Dues $750 $600
Subscriptions $350 $325
Equipment $5,000 $3,000

Calculate and analyze the variance for the budgeted amount and the actual amount spent. Along with each variance calculation, prepare a brief justification of why there may be a variance.

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