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).

Question

Quizplus · Accepted Answer

The Answer of 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).

Shevlin Urban Diner Is a Charity Supported by Donations That