Heise Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month:Heise Urban DinerStatement of ExpensesFor the Month Ended July 31Actual meals 3,800Groceries$8,730Kitchen operations 10,830Administrative expenses 5,040Fundraising expenses 1,660Total expense$26,260?Required:?Prepare a report showing the diner's spending variances for each of the
expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U).
What will be an ideal response?
| Heise Urban Diner | ||||||||
| Spending Variances | ||||||||
| For the Month Ended July 31 | ||||||||
| Actual Results | Flexible Budget | Spending Variances | ||||||
| Meals (q) | 3,800 | 3,800 | ||||||
| Groceries ($2.35q) | $ | 8,730 | $ | 8,930 | $ | 200 | F | |
| Kitchen operations ($4,000 + $1.80q) | 10,830 | 10,840 | 10 | F | ||||
| Administrative expenses ($2,800 + $0.60q) | 5,040 | 5,080 | 40 | F | ||||
| Fundraising expenses ($1,600) | 1,660 | 1,600 | 60 | U | ||||
| Total expense | $ | 26,260 | $ | 26,450 | $ | 190 | F | |
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