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Variance During the winter months, the New York City department of Social Services purchases blankets for use at shelters throughout the city. In previous years, the department had purchased blankets for 15 different shelters at a price of $7.50 per blanket, expecting that each shelter would use 14 new blankets. The department budgeted a similar amount this year; however, at the end of the year they discovered that they had spent more on blankets than anticipated. They had actually spent $1,989, purchased 234 blankets, and provided blankets to 18 shelters. Fill in the following blanks: [Note: Be sure to indicate unfavorable variances with a negative sign, e.g. -54.67. Do not use parentheses. Round your numbers to TWO decimal places, e.g. 54.12.] A) The volume variance is $ _________________ B) The quantity variance is $ _________________ C) The price variance is $ ____________________ D) Of the three variances you calculated, which one contributed the most to the total variance? 1. Volume Variance _______ 2. Quantity Variance ______ 3. Price Variance _______ Write the number corresponding to the correct option, i.e. 1 or 2 or 3 E) On average, how many blankets did each shelter actually get? __________ F) What was the actual average price of a blanket? ___________

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