Asked by Breana Gordon on Jun 05, 2024
Verified
Chaudhuri Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for April was based on 2,700 meals. The diner's director has provided the following cost formulas to use in budgets:
The director has also provided the diner's statement of actual expenses for the month:
Required: Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for April. Label each variance as favorable (F) or unfavorable (U).
Activity Variances
The differences between planned levels of activity and actual levels, and their impact on budgeted figures.
Spending Variances
The difference between the actual costs incurred and the budgeted or standard costs.
Meals
Refers generally to food that is prepared and served to individuals, often used in contexts ranging from personal dining to large-scale service industries.
- Quantify variances from expected budget outcomes against actual figures, to identify their impact as either positive or negative.
- Appraise financial status by the study of flexible budget reports.
- Mobilize cost and revenue equations for the constitution of budgeting documents.
Verified Answer
Learning Objectives
- Quantify variances from expected budget outcomes against actual figures, to identify their impact as either positive or negative.
- Appraise financial status by the study of flexible budget reports.
- Mobilize cost and revenue equations for the constitution of budgeting documents.
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