Reading variance by category
A week 4 summary for a $1,500,000 feature:
| Category | Budget | EFC | Variance | % of budget | Change from last week |
|---|---|---|---|---|---|
| Above-the-line | $310,000 | $310,000 | $0 | 0.0% | $0 |
| Production | $820,000 | $851,300 | ($31,300) | -3.8% | ($12,600) |
| Post-production | $190,000 | $184,000 | $6,000 | 3.2% | $0 |
| Other | $70,000 | $72,500 | ($2,500) | -3.6% | ($2,500) |
| Contingency | $110,000 | $110,000 | $0 | 0.0% | $0 |
| Total | $1,500,000 | $1,527,800 | ($27,800) | -1.9% | ($15,100) |
Production's variance: $820,000 - $851,300 = -$31,300, or $31,300 / $820,000 = 3.8% over. The total shows $27,800 over even though contingency hasn't been touched. This report carries contingency at its full $110,000 in EFC, so if the producer applies $27,800 of it to production, the total comes back to budget with $82,200 of contingency left. The last column says the production category got worse by $12,600 this week, which is the first question for the line producer.
Explaining it
Every significant variance needs a one-line cause, because a number without a reason can't be acted on:
- 3500 Electric: added night exterior condor and two electricians, approved 3/18.
- 3700 Transportation: fuel prices above budget assumption, 4 weeks.
- 4500 Editorial: assistant editor starts two weeks later than budgeted.
A variance caused by a decision (adding a scene) is managed differently from one caused by a pattern (daily overtime running long), which needs a fix on set.
Timing variances versus real ones
Some variance is only timing: an invoice arrived earlier than the budget spread assumed. That shows up in the cash flow schedule, not in EFC. True variance changes the projected final cost. Mixing the two makes a production look over when it's only early.
Where it comes from
Variance is only as honest as the estimate to complete behind it, and it's measured against the locked budget. Daily hot costs feed the labor side, and open purchase orders feed the commitments. The production accountant prepares it weekly, and how to read a film cost report covers the whole report.