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, for a total 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

$60.00U

Direct labor

$3,685.35

$3,237.50

$447.85U

Variable OH

$551.50

$507.50

$44.00U

Total

$5,546.85

$4,995.00

$551.85U

a.Prepare a more useful variance analysis. Your analysis should include the total budget variance as well as its price/rate/spending and quantity/efficiency component. The following format might be helpful:

Account

Actualcost

Flexible budget

Total Budget Variance

Price/Rate Variance

Qty/Efficiency Variance

Meat

$1,310.00

Direct labor

$3,685.35

Variable OH

$551.50

Total

$5,546.85