The Baird Management Association held its annual public relations luncheon in April 2017. Based on the previous year's results, the organization allocated $22,328 of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hubbard, the treasurer, prepared the following budget for the 2017 luncheon The budget for the luncheon was based on the following expectations. 1. The meal cost per person was expected to be $12.00. The cost driver for meals was attendance, which was expected to be 1420 individuals. 2. Postage was based on $0.48 per invitation and 3,100 invitations were expected to be mailed. The cost driver for postage was number of invitations mailed. 3. The facility charge is $1,200 for a room that will accommodate up to 1,600 people; the charge for one to hold more than 1600 people is $1,700 4. A fixed amount was designated for printing, decorations, the speaker's gift, and publicity SATRD MANGEMENT ASSOCIATION Public Relations Luncheon Budget April 2017 Operating funds allocated $22,328 Expenses Variable costs Meals (1.420 * $12.00) 17.040 Postage 3.100 0.38) 1.488 Pixad.costa Facility 1,200 Printing Decorations Speakerit publicity Total expenses 22,328 Budget surplus deficit) BATRD MANAGEMENT ASSOCIATION Actual Results for Publie Relations Luncheon April 2017 Operating funds allocated $22,328 Expenses Variable costs Meals (1.640 x $12.70) 20,828 Postage (4,100 0.48) 1,968 Fixed costs Facility 1,700 Printing 970 Decorations 860 Speaker's gift 150 Publicity Total expenses 27.096 Budget deficit $14.768) 620 Reasons for the differences between the budgeted and actual data follow. 1. The president of the organization, Zachary Taylor, increased the invitation list to include 1.000 former members. As a result, 4.100 invitations were mailed. 2. Attendance was 1640 individuals. Because of higher than expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to $1,700 3. At the last minute, Ms. Cole decided to add a dessert to the menu, which increased the meal cost to $12.7 per person 4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted 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 b. Compute flexible budget variances by comparing the flexible budget with the actual results Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B 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. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Flexible Budget = Volume Variance Master Budget - Allocated funds $ 22,328 Expenses Variable expenses Meals 17.040 Postage 1.488 Fixed expenses Facility Printing 1.200 970 Decorations 860 150 Speaker's gint Publicity Total expenses Surplus deficit) 620 22 328 $