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Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the meal cost.
Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the meal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 $20,300) over budget. He added, I could expect a couple hundred dollars one way or the other, but several thousand is totally unacceptable. Please explain findings why the budget variance for the meal cost to be $4,810 ($25,110 $20,300) over budget. Please provide recommendations from your computations to address the issue using flexible budget attributes. Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget for a banquet meal totaling $20,000. Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results. Justify the favorable or unfavorable budget variances. Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget. Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support recommendations to address the budget
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