Section 3 Budgeting and Variance Analysis (37 points) A. (22 points) Holbrook Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's manager has just submitted the report presented below, which compares the diner's budget for February to the actual costs for February. The diner's manager was very happy about the results because total actual costs were less than budgeted. Budget 3,600 meals Actual 3,200 meals Flexible Budget $7,380 $ 8,132 8,840 8,350 Cost category and budget assumptions Groceries ($2.05 per meal) Kitchen operations ($4,700+ $1.15 per meal) Inspections and sanitizing ($500 per week) Administrative expenses ($2,700 + $0.70 per meal) Fundraising expenses ($1.700 per month) 2,000 1,500 5,220 4,960 1,700 1,400 Total costs $ 25,140 $ 24,342 i. (10 pts. Prepare a flexible budget for the diner in the space provided above. ii. (2 pts.) As a highly trained MBA, do you share the joy of the diner's manager? (circle yes or no below) YES NO lii. (10 pts) Which two variances would you investigate? Name the expense and BRIEFLY state why it would be important to investigate