Halm Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,600 per month plus $1.15 per meal; administrative expenses, $3,800 per month plus $0.85 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 revenue and spending variances for each of the expenses and for total expenses for August. Label each variance as favorable (F) or unfavorable (U).

Question

Halm Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,600 per month plus $1.15 per meal; administrative expenses, $3,800 per month plus $0.85 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 revenue and spending variances for each of the expenses and for total expenses for August. Label each variance as favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Halm Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,600 per month plus $1.15 per meal; administrative expenses, $3,800 per month plus $0.85 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 revenue and spending variances for each of the expenses and for total expenses for August. Label each variance as favorable (F) or unfavorable (U).

Halm Urban Diner Is a Charity Supported by Donations That