JORDAN MANAGEMENT ASSOCIATIONActual Results for Public Relations LuncheonApril Year 2Operating funds allocated$25,842ExpensesVariable costsMeals (1,710 $13.40)22,914Postage (4,450 0.62)2,759Fixed costsFacility2,400Printing1,040Decorations930Speaker's gift220Publicity690Total expenses30,953Budget deficit$(5,111)

Reasons for the differences between the budgeted and actual data follow.

1. The president of the organization, Rodney Snow, increased the invitation list to include 1,000 former members. As a result, 4,450 invitations were mailed.
2. Attendance was 1,710 individuals. Because of higher-than-expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to$2,400
3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $13.4 per person.
4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted.

Required:

a.Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the master budget and the flexible budget.

b.Compute flexible budget variances by comparing the flexible budget with the actualresults.

Complete this question by entering your answers in the tabs below. Required A Required B Prepare a flexible budget and compute the sales and variable cost volume variances based on a com master budget and the flexible budget. (Indicate the effect of each variance by selecting "F" for favor and "None" for no effect (i.e., zero variance).) Master Budget Flexible Budget Volume Variance Allocated funds 25,842 Expenses: Variable expenses Meals 18,923 Postage 2.139 Fixed expenses Facility 1,900 Printing 1,040 Decorations 930 Speaker's gift 220 Publicity 690 Total expenses 25,842 Surplus(deficit) 0