The Jordan Management Association held its annual public relations luncheon in April Year 2. Based on the previous year's results, the organization allocated $25,842 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 Year 2 luncheon. 1. The meal cost per person was expected to be $12.70. The cost driver for meals was attendance, which was expected to be 1490 individuals. 2. Postage was based on $0.62 per invitation and 3450 invitations wwere expected to be mailed. The cost driver for postage was number of invitations mailed. 3. The facility charge is $1900 for a room that will hold up to 1600 peopl; the charge for one to hold more than 1600 people is $2400. 4. A fixed amount was designed for printing, decorations, the speakers gift, and publicity.

Reasons for the differences between the budgeted and actual data follow.

1.The president of the organization, Rodney Snow, increased the invitation list to include 1000 former members. As a result, 4450 invintations were mailed.

2.Attendance was 1710 individuals. Because of higher than expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to $2400.

3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $13.40 per person.

4. Printing, decorations, the speaker's gift, and publicity costs were budgeted.

a. Figure out a flexible budget and compute the sales 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.