Asked by Maddi Coones on Jul 26, 2024
Verified
Adamyan Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 2,500 meals, but the diner actually served 2,700 meals. The diner's director has provided the following cost data to use in the budget: groceries, $4.15 per meal; kitchen operations, $4,500 per month plus $1.71 per meal; administrative expenses, $3,500 per month plus $0.36 per meal; and fundraising expenses, $1,500 per month. 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 May.
Meals
Meals include the food and beverages consumed predominantly for nutrition or sustenance, often categorized based on the time of day or occasion.
Activity Variances
The difference between the budgeted and actual costs associated with a specific activity, indicating whether the activity was more or less expensive than planned.
- Prepare and examine reports that reveal variations in activity occurrences.
- Analyze and adjust budgets for service-oriented entities.
Verified Answer
SZ
Learning Objectives
- Prepare and examine reports that reveal variations in activity occurrences.
- Analyze and adjust budgets for service-oriented entities.
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