Required a Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the master budget and the flexible budget. h. Compute flexible budget variances by comparing the flexible budget with the actual results. .00 Analyzing not-for-profit entity variances Problem 8-19A he Redmond Management Association held its annual public relations luncheon in ased on the previous year's results, the organization allocated $25,290 of its o rating budget to 1.620 U cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hiu the treasurer, prepared the following budget for the 2017 luncheon. 1. The meal cost per person was expected to be $14.50. The cost driver for meals was atendanice 2. Postage was based on $0.49 per invitation and 3,000 invitations were expected to be mailed. Th 3. The facility charge is $1,000 for a room that will accommodate up to 1,600 people; the ch The budget for the luncheon was based on the following expectations: which was expected to be 1,400 individuals. cost driver for postage was number of invitations mailed. one to hold more than 1,600 people is $1,500. l was designated for printing, docorations, the speaker's gift, and publicity Performance Evotation38 le or u REDMOND MANAGEMENT ASSOCIATION Public Relatons Luncheon Budget Apri 2017 Operating funds alocated Meals (1,400 x $14.50) Postage (3,000 x50.49 0,300 1,470 ,000 950 Speaker's gint about the Total expenses Budget surplus (deficit rges its esalts for the luncheon follow. REDMOND MANAGEMENT ASSOCIATION Actual Resuts for Publc Relations Luncheon Operating funds allocated Expenses 25.290 Meals (1,620x $15.50 Postage (4,000 x $0.49) Fixed costs 25.110 1,960 n expects 1,500 950 240 130 800 31.090 Printing umber of r charges e budget Speakers git Publicity Total expenses mber of Budget deficit ommend asons for the differences between the budgeted and actual data follow L The president of the organization, Rodney Snow, increased the invitation tist to include 1,000 imer members. As a result, 4,000 invitations were mailed. Allendance was 1.620 individuals. Because of higher-than-expected attenrdance, the luncheon was noved to a larger room, thereby increasing the facility charge to $1.500. I 2017 dget to ubbard. l Al the last minute, Ms. Hubbard decided to add a dessert to the mena, wbich increased the meal aost lo $15.50 per person. hiting decorations, the speaker's gift, and publicity conts were as budgeted. danceP a flexible budget and compute the sales and variable cost volume variances based on a elepurison ber between the master budget and the flexible budget. flexible budget variances by comparing the flexible budget with the actual results. for rge