Question
The Bourne Free Animal Shelter provides food and shelter for stray and abused dogs. The projected consumption of food is 3 pounds per day per
The Bourne Free Animal Shelter provides food and shelter for stray and abused dogs. The projected consumption of food is 3 pounds per day per dog.The clinic estimates the cost of the food will be $0.85 per pound. It has budgeted feeding an average of 90 dogs per day. This means that it expects to use 3 pounds of food per dog, per day on average. The clinic actually fed an average of 120 dogs per day. Each dog consumed 3.5 pounds of food and the average price per pound of food was $0.65. Indicate whether each of the variances is favorable or unfavorable.
a. Bourne's total daily food-expense variance
b. the portion of the daily food-expense variance that was due to volume
c. the portion of the daily food-expense variance that was due to quantity
d. the portion of the daily food-expense variance that was due to cost
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