Gamon Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diners manager has just submitted the report presented below, which compares the diners budget for February to the actual costs for February. The diners manager was very happy about the results because total actual costs were less than budgeted.

Cost category and budget assumptions	Budget 3,600 meals	Actual 3,200 meals	Flexible Budget
Groceries ($2.05 per meal)	$ 7,380	$ 8,132
Kitchen operations ($4,700 + $1.15 per meal)	8,840	8,350
Inspections and sanitizing ($500 per week)	2,000	1,500
Administrative expenses ($2,700 + $0.70 per meal)	5,220	4,960
Fundraising expenses ($1,700 per month)	1,700	1,400
Total costs	$ 25,140	$ 24,342

Prepare a flexible budget for the diner in the space provided above

As a highly trained MBA, do you share the joy of the diners manager? (circle yes or no below) YES NO

Which two variances would you investigate? Name the expense and BRIEFLY state why it would be important to investigate.