Wagster Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for November was based on 2,400 meals.The diner's director has provided the following cost data to use in the budget:
groceries,$2.05 per meal; kitchen operations,$4,500 per month plus $1.75 per meal; administrative expenses,$3,500 per month plus $0.20 per meal; and fundraising expenses,$1,700 per month.The director has also provided the diner's statement of actual expenses for the month:
Required:
Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for November.Label each variance as favorable (F)or unfavorable (U).

Question

Wagster Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for November was based on 2,400 meals.The diner's director has provided the following cost data to use in the budget:
 groceries,$2.05 per meal; kitchen operations,$4,500 per month plus $1.75 per meal; administrative expenses,$3,500 per month plus $0.20 per meal; and fundraising expenses,$1,700 per month.The director has also provided the diner's statement of actual expenses for the month:
  Required:
Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for November.Label each variance as favorable (F)or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Wagster Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for November was based on 2,400 meals.The diner's director has provided the following cost data to use in the budget:
 groceries,$2.05 per meal; kitchen operations,$4,500 per month plus $1.75 per meal; administrative expenses,$3,500 per month plus $0.20 per meal; and fundraising expenses,$1,700 per month.The director has also provided the diner's statement of actual expenses for the month:
  Required:
Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for November.Label each variance as favorable (F)or unfavorable (U).

Wagster Urban Diner Is a Charity Supported by Donations That