Tiff’s Bordeaux restaurant serves breakfast, lunch and dinner. In June it was budgeted that 500 covers would be served. the budgeted revenue and variable cost per cover is presented in Schedule 1 below. In addition, the restaurant manager budgeted that June’s fixed costs would be €800.

Actual results aieved in June are detailed in Sedule 2. Fixed costs actually incurred in June were €740.

Required:

a) Produce a flexible budget performance sedule for June that presents the flexible budget revenue variances and also the flexible budget variable cost variances for each of the three restaurant sittings.

b) Comment on any variances that might warrant further management investigation.

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Schedule 1: Tiff's Restaurant June budgeted volume of covers, average revenue and variable cost per cover served Covers served Average revenue Variable cost per per cover cover Breakfast 100 7 2.5 Lunch 150 14 5.0 Dinner 250 25 10.0