Hallmark is a charity supported by donations that provides free meals to the hom
ID: 2553673 • Letter: H
Question
Hallmark is a charity supported by donations that provides free meals to the homeless. The budget for August was based on 3,000 meals. The 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 statement of actual expenses for the month:
Hallmark Statement of Expenses
For the month ended August 31
Actual meals 2,900 meals
Groceries $10,735
Kitchen operations 8,155
Administrative expenses 6,305
Fundraising expenses 1,620
Total expense $26,815
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 August. Label each variance as favorable (F) or unfavorable (U).
Explanation / Answer
Flexible Budget For 2900 Meals
Particulars Standard Cost Actual Cost Variance Groceries $ 11165 $ 10735 $ 430 (F) Kithen Operation $ 7935 $ 8155 $ 220 (U) Administative Expense $ 6265 $ 6305 $ 40 (U) Fundraising Expence $ 1600 $ 1620 $ 20 (U) Total Expense $ 26965 $ 26815 $ 150 (F)Related Questions
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