Sales 2,500 chili servings

Direct materials: $1,250 (1/4 pound @ $2.00 per pound, times 2,500 servings)

Direct labor: 3,237.50 (0.14 DLH per bowl @ $9.25 per DLH, times 2,500 servings)

Variable overhead: $507.50 (VOH allocated at $1.45 per DLH, times 350 DLH budgeted)

Actual February performance of the Riverside Mall restaurant was:

Sales 2,800 servings

588 lbs of meat, at a cost of $1,310.00

395 DLH, for a direct labor cost of $3,685.35

Variable overhead expenses of $551.50

In early March, Sam received the following financial performance report:

PLEASANT TOWN CHILI
Kitchen Performance Report
For the Month of February
	Actual	Budget	Variance
Meat	$1,310.00	$1,250.00	$60.00 U
Direct labor	$3,685.35	$3,237.50	$447.85 U
Variable OH	$551.50	$507.50	$44.00 U
Total	$5,546.85	$4,995.00	$551.85 U

1. Prepare a more useful variance analysis. Also, split each variance into its price/rate/spending and quantity/efficiency components. The following format might be helpful:

Account	Actual cost	Flexible budget	Total Budget Variance	Price Variance	Quantity Variance
Meat	$1,310.00
Direct labor	$3,685.35
Variable OH	$551.50
Total	$5,546.85