Problem 8-19A Analyzing not-for-profit entity variances -3 Redmond Management Association held its annual public relations luncheon B The in April 201 d on the previous year's results, the organization allocated $25.290 of its operatin cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hut the treasurer, prepared the following budget for the 2017 luncheon. $1,620 U ase The budget for the luncheon was based on the following expectations: 1. The meal cost per person was expected to be $14.50. The cost driver for meals was which was expected to be 1,400 individuals. Postage was based on $0.49 per invitation and 3.000 invitations were expected cost driver for postage was number of invitations mailed 2. 3. The facility charge is $1,.000 for a room that will accommodate up to 1.600 people: the chage fe one to hold more than 1,600 people is $1,500 was designated for printing, decorations, the speaker's gift, and publicity. Performance Evaluation 38 sible for REDMOND MANAGEMENT ASSOCIATION Public Relations Luncheon Budget ible for April 2017 Operating funds allocated Expenses 25 290 Variable costs Meals (1,400x $1450 Postage 13.000 x $0.49) Fxed costs Facility Printing Decorations 20,300 1,470 1,000 950 Speakers gfht Publicity 130 ut the Total expenses Budget surplus (defici for the luncheon follow REDMOND MANAGEMENT ASSOCIATION Actual Results for Public April 2017 Operating funds allocated Expenses $25,290 Variable costs Meals (1.620 $15.501 Postage (4,000 x $0.49) Flxed costs 25.110 1,960 1,500 950 840 130 600 1,090 of Printing Decorations Speakers gift of Total expenses Budget deficit nd laces for the differences between the budgeted and actual data follow he president of the organization, Rodney Snow, increased the invitation list to include 1,.000 lrmer members. As a result, 4,000 invitations were mailed ltendance was 1.620 individuals. Because of higher than-expected attendance, the lunchoon was ned to a larger room, thereby increasing the facility charge to S1.500 he last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal t to $15.50 per person. decorations, the speaker's gift, and publicity costs were as budgeted. budget and compute the sales and variable cost volume variances based on a between the master budget and the flexible budget. ible budget variances by comparing the flexible budget with the actual results