Scenario: The Redmond Management Association held its annual public relations luncheon in April Year $2.$ Based on the previous year$$s results, the organization allocated $$25,290$ of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, you, the treasurer, prepared the following budget for the Year $2$ luncheon.Mr$.$ Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the meal cost. He told you that the added dessert caused the meal cost to bePublic Relations Luncheon Budget April Year $2$ Operating funds allocated $$25,290$ Expenses Variable costs Meals $(1,400\backslash$times $$14\mathrm{.}50)20,300$ Postage $(3,000\backslash$times $$0\mathrm{.}49)1,470$ Fixed costs Facility $1,000$ Printing $950$ Decorations $840$ Speaker$$s gift $130$ Publicity $600$ Total expenses $25,290$ Budget surplus $($deficit$)$ $ $0$ Actual results for the luncheon follow. REDMOND MANAGEMENT ASSOCIATION Actual Results for Public Relations Luncheon April Year $2$ Operating funds allocated $$25,290$ Expenses Variable costs Meals $(1,620\backslash$times $$15\mathrm{.}50)25,110$ Postage $(4,000\backslash$times $$0\mathrm{.}49)1,960$ Fixed costs Facility $1,500$ Printing $950$ Decorations $840$ Speaker$$s gift $130$ Publicity $600$ Total expenses $31,090$ Budget deficit $ $(5,800)$ Reasons for the differences between the budgeted and actual data followPublic Relations Luncheon Budget April Year $2$ Operating funds allocated $$25,290$ Expenses Variable costs Meals $(1,400\backslash$times $$14\mathrm{.}50)20,300$ Postage $(3,000\backslash$times $$0\mathrm{.}49)1,470$ Fixed costs Facility $1,000$ Printing $950$ Decorations $840$ Speaker$$s gift $130$ Publicity $600$ Total expenses $25,290$ Budget surplus $($deficit$)$ $ $0$ Actual results for the luncheon follow. REDMOND MANAGEMENT ASSOCIATION Actual Results for Public Relations Luncheon April Year $2$ Operating funds allocated $$25,290$ Expenses Variable costs Meals $(1,620\backslash$times $$15\mathrm{.}50)25,110$ Postage $(4,000\backslash$times $$0\mathrm{.}49)1,960$ Fixed costs Facility $1,500$ Printing $950$ Decorations $840$ Speaker$$s gift $130$ Publicity $600$ Total expenses $31,090$ Budget deficit $ $(5,800)$ Reasons for the differences between the budgeted and actual data follow