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You have been employed as a customer relations representative for a firm. Your firm encourages the employees of customers to visit your firm's plant to
You have been employed as a customer relations representative for a firm. Your firm encourages the employees of customers to visit your firm's plant to see how products are made. One of your responsibilities is to take customer-employee visitors to lunch. The budget allowance for these lunches is $6 per visitor. When the budget for November was prepared, it was estimated that 60 customer-employees would visit your plant that month. Early in December, the following information appeared in the performance report for your department:
Budget | Actual | Variance | Variance % | |
Customer lunches | $360 | $430 | $70 U | 19.4% U |
Your records indicate that during November you actually took 72 visitors to lunch.
a. Explain how the budget amount was determined.
b. Evaluate the above performance report.
c. Prepare a more appropriate performance report.
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a The budget amount of 360 was determined by multiplying the number of customer employ ee visitors e...Get Instant Access to Expert-Tailored Solutions
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