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The G School District (GSD) expected to have 2,700 aggregate degree days during the school year. Degree-days occur whenever the outside temperature goes low enough to require the school district to heat their facilities. Historically, the district has used 160 gallons of fuel oil for each degree day. The budget for fiscal year 2013-14 was based on an average price of $1.25 per gallon of heating oil. By the end of the fiscal year, there had been 2,450 degree days and the district had used 404,250 gallons of oil. The actual average cost per gallon of heating oil was $1.47. Calculate the following variances and indicate whether they were favorable or unfavorable.
a) GSD’s total fuel-expense variance for the fiscal year
b) the portion of the fuel-oil expense-variance that was due to volume
c) the portion of the fuel-oil expense-variance that was due to quantity
d) the portion of the fuel-oil expense-variance that was due to cost
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