1. Prepare a planning budget for August.
2. In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. Its budgeted revenue per serving is $5.00. Prepare a flexible budget for August using this new information.
3. Calculate the activity variances in August.
4. Provide a brief description of how the event's budget aligned to the planning budget.

Annies Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost driversnumber of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the companys cost formulas are shown below:

	Fixed Cost Per Month	Cost per Serving	Cost per Labor-Hour
Ingredients expense		$1.25
Salaries and wages expense	$7,000		$8.00
Franchise fee		$0.25
Credit card processing fees		$0.09
Utilities expense	$300	$0.02
Rent expense	$3,000
Equipment depreciation expense	$1,750
Other expenses	$ 4,200