Harrald’s Fish House is a family-owned restaurant that specializes in Scandinavian-style seafood. Data concerning the restaurant’s monthly revenues and costs appear below (q refers to the number of meals served):

Required:
1. Prepare the restaurant’s planning budget for April assuming that 1,800 meals are served.
2. Assume that 1,700 meals were actually served in April. Prepare a flexible budget for this level of activity.
3. The actual results for April appear below. Compute the revenue and spending variances for the restaurant for April.

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Revenue.... Cost of Ingredients.. Wages and salaries...... Utilities.. Rent Miscellaneous.. Formula $16.50q $6.25q $10,400 $800 + $0.20q $2,200 $600 + $0.80q