The service unit or output for this department is the number of
Given this favorable variance of 20%, it can be said that the department manager has been effective in controlling spending and adhering to their budget. The manager appears to have done an admirable job in managing expenses and keeping costs lower than initially estimated. It is likely that they have employed various cost-saving strategies to achieve this result. Furthermore, since there is no indication as to whether or not any projects or tasks were sacrificed due to budgetary constraints, it is safe to assume that all goals set out by the department were met without compromise on quality or deadline schedules.
Overall, based on this data we can conclude that the performance of the department manager has been effective as evidenced by their ability to save money while still achieving desired outcomes.