Asked by Penina Sturm on Jul 30, 2024
Verified
Solimini Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for January was based on 3,900 meals, but the diner actually served 3,400 meals. The diner's director has provided the following cost formulas to use in budgets:
Required:Prepare a report showing the activity variances for each of the expenses and for total expenses for January. Label each variance as favorable (F) or unfavorable (U).
Activity Variances
Differences between the expected levels of activity used for costing purposes and the actual levels of activity observed, which can impact on cost calculations.
Total Expenses
The sum of all costs and expenses incurred by a business during a specific period, including operational and non-operational costs.
- Estimate the financial deviation from the budget plan compared to actual spending, identifying if the outcome is favorable or unfavorable.
- Critique financial performance by drawing insights from flexible budget reports.
- Commit to using cost and revenue calculations for budget document production.
Verified Answer
JS
Learning Objectives
- Estimate the financial deviation from the budget plan compared to actual spending, identifying if the outcome is favorable or unfavorable.
- Critique financial performance by drawing insights from flexible budget reports.
- Commit to using cost and revenue calculations for budget document production.
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