Operations Budgeting 529 Problem 7 The accountant at Pratt's Place analyzes only significant budget variances on a monthly basis. The criteria used to determine if the budget variances are significant are as follows: Revenues Fixed expenses Variable expenses $5,000 and 4 percent $100 only $500 and 2 percent Selected revenues and expenses for October 20X2 are as follows: Budget Actual Dollar Variance Percentage Variance S/NS Room sales 200,000 196,000 Food sales 50,000 56,000 Cost of food sold (V) 15,000 16,000 Labor (F) 10,000 9,700 Labor (V) 15,000 15,200 Supplies (V) 2,500 2,700 Franchise fees (V) 4,000 4,480 Depreciation (F) 6,000 6,000 Insurance (F) 2,000 2,050 Property taxes (F) 3,000 3,000 Required: 1. Complete the two variance columns above. 2. Identify each variance as either (S) significant or (NS) not significant.