WESTWOOD MANAGEMENT ASSOCIATION Public Relations Luncheon Budget April 2013 Operating funds allocated $25,328 Expenses Variable costs Meals (1,480x $12.60 Postage (3,400x 0.60) Fixed costs Facility Printing Decorations Speaker's gift Publicity 18,648 2,040 1,800 1,030 920 210 680 25,328 Total expenses Rudnet surnlus Idefirit) Actual results for the luncheon follow WESTWOOD MANAGEMENT ASSOCIATION Actual Results for Public Relations Luncheon April 2013 $25,328 Operating funds allocated Expenses Variable costs Meals (1,700 x 13.3) Postage (4,400 x 0.60) Fixed costs Facility Printing Decorations Speaker's gift Publicity 22,610 2,640 2,300 1,030 920 210 680 210 680 Speaker's gift Publicity 30,390 Total expenses $(5,062) 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 2. Attendance was 1.700 individuals. Because of higher-than-expected attendance, the 3. At the last minute, Ms. Cole decided to add a dessert to the menu, which increased 4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted. include 1,000 former members. As a result, 4,400 invitations were mailed luncheon was moved to a larger room, thereby increasing the facility charge to$2,300 the meal cost to $13.3 per person. 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. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Negative amount should be indicated by a minus sign.) Answer is not complete. Volume Variance Master Budget S 25,328 Flexible Budget Allocated funds Expenses: Variable expenses S 25,328 22,610 2,640 18,648 Meals 2,040 Postage Fixed expenses ge Variance Allocated $ 25,328 25,328 Expenses: Variable expenses 18,648 2,040 22,610 Postage Fixed 2,640 expenses 2.300 ,030 1,800 1,030 920 210 680 25,328 Facility Printing Decorations Speaker's 2 920 > 210 680 30,390 S (5,062) gift Publicity Total expenses Surplus(deficit) S 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). Negative amount should be indicated by a minus sign.) 8Answer is not complete. Flexible Variances Actual Results Flexible Budget Allocatecd funds $25,328 Expenses: Variable costs 22,610 2,640 Meals Postage Fixed costs: Facility Printing 2,300 1,030 Flexible Budget Actual Results Flexible Variances Allocated $ 25,328 funds Expenses: Variable costs: Meals 22,610 Postage 2,640 Fixed costs: Facility Printing Decorations Speaker's 2,300 1,030 920 210 680 30,390 (5,062) ift Publicity Total expenses Surplus(deficit)