Asked by Michael Kumlien on Apr 23, 2024
Verified
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:
The director has also provided the diner's statement of actual expenses for the month:
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).
Activity Variances
The differences between the expected costs of activities and the actual costs, used in managerial accounting to analyze performance.
Meals Served
The total number of meals prepared and provided to customers over a given period, often used in the hospitality or restaurant industry as a performance metric.
- Calculate disparities between anticipated and realized budget figures, determining if they are constructive or detrimental.
- Investigate the financial robustness using flexible budget reports for analysis.
- Execute the employment of cost and revenue equations in assembling budget summaries.
Verified Answer
ZD
Learning Objectives
- Calculate disparities between anticipated and realized budget figures, determining if they are constructive or detrimental.
- Investigate the financial robustness using flexible budget reports for analysis.
- Execute the employment of cost and revenue equations in assembling budget summaries.
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