Question
Adamyan Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 2,300
Adamyan Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 2,300 meals, but the diner actually served 2,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $4.05 per meal; kitchen operations, $4,300 per month plus $1.69 per meal; administrative expenses, $3,300 per month plus $0.34 per meal; and fundraising expenses, $1,300 per month. The director has also provided the diner's statement of actual expenses for the month:
Adamyan Urban Diner | ||
Statement of Expenses | ||
For the Month Ended May 31 | ||
Actual meals | 2,500 | |
Groceries | $ | 10,075 |
Kitchen operations | 8,500 | |
Administrative expenses | 3,970 | |
Fundraising expenses | 1,300 | |
Total expense | $ | 23,845 |
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
flexible budget planning budget activity variance
meals 2500 2300 blank blank
groceries X X X F,U,None
Kitchen Operations. X X X F,U, None
Administrative expense X X X F,U,None
Fundraising Expense X X X F,U,None
Total Expense X X X F,U,None
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