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please show steps of computing the variances The Vegan Wagon is part of a chain of restaurants and has been losing money in past months.
please show steps of computing the variances
The Vegan Wagon is part of a chain of restaurants and has been losing money in past months. Part of the problem has been a decline in the number of meals served, since there is no sales price variance. However, sales are expected to pick up during the summer months. In April, for example, the loss was 2.250 . Budget Actual Revenue 80.000 C 65.000 Costs: Cost of ingredients 24.000 C 22.750 6 Serving personnel 20.000 C 19.000 Cashier 4.0006 4.000 6 Administration 12.000 6 14.000 6 Corporate cost allocation 8.000 E 6.500 6 Utilities 1.500 C 1.000 6 Prot (Loss) 10.500 C (2.250 C) The restaurant purchases ingredients directly from the chain and is charged in direct proportion to the number of meals served. Personnel paid by Vegan prepare and serve food, tend the cash register, bus and clean tables, and wash dishes. The staffing levels in Vegan are rarely changed the existing crew can handle modest fluctuations in volume. Administrative costs are largely the salaries of the manager and her staff. The chain allocates corporate costs based on revenue, and the usual charge is 10% of Vegan's revenue. Utilities are the costs of heating and lighting the restaurant during normal operating hours and are rarely unaffected by the amount of food prepared. Required: 1. Prepare a report that provides relevant information to be used to evaluate the performance of the manager and compute the variances. 2. Identify the largest variance and list questions that you would ask the manager about that varianceStep by Step Solution
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