Question
California Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 2,200
California Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 2,200 meals, but the diner actually served 2,000 meals. The diner's director has provided the following cost formulas to use in budgets:
Fixed element per month | Variable element per meal | |
Groceries | $0.00 | $2.25 |
Kitchen operations | $5,300 | $1.35 |
Administrative expenses | $3,600 | $0.45 |
Fundraising expenses | $1,300 | $0.00 |
The director has also provided the diner's statement of actual expenses for the month.
California Memorial Diner Statement of Expenses For the Month Ended October 30 | |
Actual meals | 2,000 |
Groceries | $4,450 |
Kitchen operations | 7,760 |
Administrative expenses | 4,550 |
Fundraising expenses | 1,290 |
Total expense | $18,050 |
On the basis of the above data, you are required to do the following: Prepare a report showing the activity variances for each of the expenses and for total expenses for October. Label each variance as favorable (F) or unfavorable (U)
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