Heise Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month:
Required:Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U).

Question

Heise Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month:
  Required:Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Heise Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month:
  Required:Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U).

Heise Urban Diner Is a Charity Supported by Donations That