Asked by Sebastian Alonso on Jul 27, 2024
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Westby Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for February was based on 3,900 meals, but the diner actually served 4,400 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.05 per meal; kitchen operations, $5,500 per month plus $1.40 per meal; administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising expenses, $1,500 per month.Required:Prepare the diner's flexible budget for the actual number of meals served in February. The budget will only contain the costs listed above; no revenues will be on the budget.
Flexible Budget
A budget designed to adapt to changes in activity or volume levels, ensuring more accurate budgeting and variance assessments.
Meals Served
The total number of meals prepared and provided to customers or clients over a specific period.
Kitchen Operations
The range of activities involved in the running and management of a kitchen, including meal preparation, cooking, and cleaning.
- Create variable budgets reflective of actual activity measures.
- Propel the use of cost and revenue equations towards the creation of budget outlines.
- Understand the significance of budgeting within non-profit entities.
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Learning Objectives
- Create variable budgets reflective of actual activity measures.
- Propel the use of cost and revenue equations towards the creation of budget outlines.
- Understand the significance of budgeting within non-profit entities.
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