The Franklin Management Association held its annual public relations luncheon in April 2017. Based on the previous year's results, the organization allocated $24,818 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 $12.50. The cost driver for meals was attendance, which was expected to be 1,470 2. Postage was based on $0.58 per invitation and 3,350 invitations were expected to be mailed. The cost driver for postage was 3. The facility charge is $1,700 for a room that will accommodate up to 1,600 people; the charge for one to hold more than 1,600 4. A fixed amount was designated for printing, decorations, the speaker's gift, and publicity individuals. number of invitations mailed. people is $2,200. FRANKLIN ASSOCIATION Public Relations Luncheon Budget April 2017 Operating funds allocated $24,818 Variable costs Meals (1,470 $12.50) Postage (3,350 x 0.58) Fixed costs Facility Printing Decorations Speaker s gift Publicity 18,375 1,943 1,700 1,020 910 670 Total expenses Budget surplus (deficit) 24,818 Actual results for the luncheon follow FRANKLIN MANAGEMENT ASSOCIATION Actual Results for Public Relations Luncheon April 2017 Operating funds allocated $24,818 Variable costs Meals (1,690x $13.20) Postage (4,350x 0.58) Fixed costs Eacility Printing Decorations Speaker s gift Publicity 22,308 2,523 2,200 1,020 910 200 670 29,831 (5,013) Total expenses Budget deficit 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, 4,350 invitations were mailed. 2. Attendance was 1,690 individuals. Because of higher-than-expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to$2,200 3. At the last minute, Ms. Cole decided to add a dessert to the menu, which increased the meal cost to $13.2 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 (i.e., zero variance).) Master Budget 24,818 Flexible BudgetVolume Variance Allocated funds Expenses: Variable expenses 18,375 1,943 Meals Postage Fixed expenses Facility Printing 1,700 1,020 910 200 670 24,818 Speaker's gift Publicity Total expenses Surplus(deficit) Required A Required B> Complete this question by entering your answers in the tabs below Required A Required B Compute flexible budget variances by comparing the flexible budget with the actual results. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Flexible BudgetActual ResultsFlexible Allocated funds Expenses: Variable costs 24,818 Meals 22,308 2,523 Postage Fixed costs: Facility Printing Decorations Speaker's gift Publicity 2,200 1,020 910 200 670 29,831 (5,013) Total expenses Surplus(deficit) S Required A Required B