Dukette Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 2,600 meals, but the diner actually served 2,200 meals. The diner's director has provided the following cost formulas to use in budgets: Fixed elementper monthVariable element per customerGroceries 0 $3.65 Kitchen operations$4,500 $1.15 Administrative expenses$2,900 $0.55 Fundraising expenses$1,300 $0.00 ?The director has also provided the diner's statement of actual expenses for the month:Dukette Memorial DinerStatement of ExpensesFor the Month Ended August 31Actual meals 2,200Groceries$7,950Kitchen operations 7,110Administrative expenses 4,230Fundraising expenses 1,270Total expense$20,560?Required:?Prepare a report showing
the activity variances for each of the expenses and for total expenses for August. Label each variance as favorable (F) or unfavorable (U).
What will be an ideal response?
| Dukette Memorial Diner | ||||||||
| Activity Variances | ||||||||
| For the Month Ended August 31 | ||||||||
| Flexible Budget | Planning Budget | Activity Variances | ||||||
| Meals (q) | 2,200 | 2,600 | ||||||
| Groceries ($3.65q) | $ | 8,030 | $ | 9,490 | $ | 1,460 | F | |
| Kitchen operations ($4,500 + $1.15q) | 7,030 | 7,490 | 460 | F | ||||
| Administrative expenses ($2,900 + $0.55q) | 4,110 | 4,330 | 220 | F | ||||
| Fundraising expenses ($1,300) | 1,300 | 1,300 | 0 | |||||
| Total expense | $ | 20,470 | $ | 22,610 | $ | 2,140 | F | |
You might also like to view...
What two types of artwork can be included in the foreground of electronic slides? Briefly explain the distinction between these types
What will be an ideal response?
The reintroduction of a familiar practice within the same organization is called a(n)
A. practical change. B. adaptive change. C. reactive change. D. innovative change. E. radically innovative change.
Which element below is not an outcome when trust in the workplace is low?
a. Lack of task engagement b. Risk taking c. Higher levels of absenteeism d. Apathy toward organizational goals
Assume that customer arrivals at a small cafe can be modeled by a Poisson distribution. The average arrival rate is 3 customers per hour. What is the probability of 2 or fewer arrivals in the next hour (to three decimal places)?
a. Cannot be determined from the information given b. 0.152 c. 0.224 d. 0.423