Asked by Haimanti Bhattacharyya on Jul 19, 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 3,700 meals, but the diner actually served 3,200 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.10 per meal; kitchen operations, $5,700 per month plus $1.55 per meal; administrative expenses, $3,800 per month plus $0.35 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.
Activity Variances
Differences that arise between planned or expected costs and actual costs based on changes in activity levels in cost accounting.
Groceries
Items of food or household necessity purchased regularly for consumption or use.
- Acquire the skills needed for formulating a variable budget according to genuine activity measures.
- Acquire the skill to compute and analyze deviations from the budget, whether they are positive or negative.
Verified Answer
ST
Learning Objectives
- Acquire the skills needed for formulating a variable budget according to genuine activity measures.
- Acquire the skill to compute and analyze deviations from the budget, whether they are positive or negative.
Related questions
During September, Clendennen Corporation Budgeted for 24,000 Customers, but Actually ...
Quesnel Clinic Bases Its Budgets on the Activity Measure Patient-Visits ...
Mansour Memorial Diner Is a Charity Supported by Donations That ...
ALT Furniture, Incorporated Is a Chair Repair Company ...
Ginnings Corporation Bases Its Budgets on the Activity Measure Customers ...