Stuffed restaurant has the following results for May 2002:  LO1 Budget Actual Number of meals 10,000 12,000 ia ‘s Price per meal 10.00 10.60 Food cost 30,000 37,200 Labour cost 35,000 36,000 Variable overheads 5,000 6,000 Fixed overheads 3,000 3,100 Required:

(i) Calculate the flexed budget.

(i) Calculate the sales price variance.

(iii) Calculate the overall cost variances for materials, labour, variable overheads and fixed overheads (note: you do not have enough information to calculate the more detailed price and quantity variances).

(iv) Calculate the sales quantity variance.

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(v) Discuss the variances. In particular, highlight what extra information might be needed.