The Thornton Management Association held its annual public relations luncheon in April Year 2. Based on the previous year's results, the organization allocated $29,552 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.

The budget for the luncheon was based on the following expectations:

1. The meal cost per person was expected to be $13.40. The cost driver for meals was attendance, which was expected to be 1,560 individuals.
2. Postage was based on $0.76 per invitation and 3,800 invitations were expected to be mailed. The cost driver for postage was number of invitations mailed.
3. The facility charge is $2,600 for a room that will accommodate up to 1,700 people; the charge for one to hold more than 1,700 people is $3,100.
4. A fixed amount was designated for printing, decorations, the speaker's 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 1,000 former members. As a result, 4,800 invitations were mailed.
2. Attendance was 1,780 individuals. Because of higher-than-expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to$3,100
3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $14.1 per person.
4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted.