Question
AP-18B LO 2 3 Buffalo West Restaurant is a fine-dining restaurant open for dinner each night. Management budgets 36% food cost. Each guest is expected
AP-18B LO 2 3 Buffalo West Restaurant is a fine-dining restaurant open for dinner each night. Management budgets 36% food cost. Each guest is expected to spend $50 on food. For the month of June, the restaurant expects 1,800 guests. By the end of the month, the following results were recorded: Actual food cost was $27,744. It served a total of 1,700 guests during the month. Guests spent $48 on average on food. Required a) Calculate the sales price variance for the month. b) Calculate the sales quantity variance for the month. c) Calculate the food cost variance for the month. Flexible Budgeting and Variance Analysis Chapter 7 195 d) Calculate the food quantity variance for the month. e) Provide the manager with some possible explanations as to why food cost is lower than expected
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started