lice: Planning, Coordinating, and Controllin... Conne Seved Help Save & CI PEREZ MANAGEMENT ASSOCIATION Actual Results for Public Relations Luncheon April Year 2 Operating funds allocated $26,882 Expenses Variable costs Meals (1,730 x $13.60) 23,528 Postage (4,550 x 0.66) 3,003 Fixed costs Facility 2,600 Printing Decorations 950 Speaker's gift 240 Publicity 718 Total expenses 32,091 Budget deficit $(5,209) 1.060 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, 4,550 invitations were mailed. 2. Attendance was 1,730 individuals. Because of higher than-expected attendance, the luncheon was moved to a larger foom, thereby increasing the facility charge to $2,600 3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $13.6 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 actual results. Complete this question by entering your answers in the tabs below. Prey 1 of 1 Next a. Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the maste budget and the flexible budget. b. Compute flexible budget variances by comparing the flexible budget with the actual results. 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 comparison between the master budget and the flexible budget. (Indicate the effect of each variance by selecting "F" for favorable, "Ufor unfavorable, and "None" for no effect (.e., zero variance).) Master Budget Flexible Budget = Volume Variance Allocated funds $ 26,882 Expenses: Variable expenses Meals 19.479 Postage 2,343 Fixed expenses Facility 2,100 Printing 1,060 Decorations 950 Speaker's gift 240 Publicity 710 Total expenses 26,882 Surplus(deficit) $ 0 Required B >