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The Checkers Club prepares a budget for a trip. They expect to use 12 gallons of gas and pay $2.95 per gallon. In addition, they
The Checkers Club prepares a budget for a trip. They expect to use 12 gallons of gas and pay $2.95 per gallon. In addition, they estimate buying 5 meals at a cost of $200 per meal. They actually use 14 gallons and pay $3.20 per gallon and spend $1,100 for 4 meals.
From the foregoing information, compute the following variances. Indicate whether the variance is favorable (F) or unfavorable (U): Show your work!
- Gasoline quantity variance.
- Gasoline price variance.
- Meal quantity variance.
- Meal price variance.
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