Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Corporate Valuation Fundamental Analysis, Asset Pricing, And Company Valuation

Authors: Pasquale De Luca

1st Edition

331993550X, 9783319935508

More Books

Students also viewed these Accounting questions