Asked by Mikaela Forcum on May 19, 2024
Verified
Shevlin Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,200 meals, but the diner actually served 3,600 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.35 per meal; kitchen operations, $5,800 per month plus $1.25 per meal; administrative expenses, $3,400 per month plus $0.40 per meal; and fundraising expenses, $1,400 per month.Required:Prepare a report showing the activity variances for each of the expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U).
Activity Variances
The differences between the budgeted and actual costs of activities performed by a business.
Meals Served
The total number of individual meal portions provided or sold during a specific time frame, often used in the food service industry to measure output.
- Evaluate discrepancies between forecasted and real financial data to identify if the results are beneficial or detrimental.
- Conduct an analysis of financial efficiency through the use of flexible budget reports.
- Use cost and revenue calculations to develop reports on budgets.
Verified Answer
LF
Learning Objectives
- Evaluate discrepancies between forecasted and real financial data to identify if the results are beneficial or detrimental.
- Conduct an analysis of financial efficiency through the use of flexible budget reports.
- Use cost and revenue calculations to develop reports on budgets.
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