1. The president of the organization, Rodney Snow, increased the invitation list to include 1,000 former members. As a result, 4,650 invitations were mailed.
2. Attendance was 1,750 individuals. Because of higher-than-expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to$2,800
3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $13.8 per person.
4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted.

Required:

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 actualresults.

Master Budget

Allocated funds 27,938

Expenses:

Variable expenses:

Meals 20,043

Postage 2,555

Fixed expenses:

Facility 2,300

Printing 1,080

Decorations 970

Speaker's gift 260

Publicity 730

Total expenses 27,938

Surplus(deficit)$0

How do find the flexible budget and how do I determine if it's favorable or unfavorable or none?