13 Eats for Kids is an organization that provides lunches to children in the sum

Question

13 Eats for Kids is an organization that provides lunches to children in the summer when Kitchen Operations, the organization reported the following For the most recent month of they are out of school. Fixed Cost per month Variable Cost per meal Budget for Kitchen Operations ?s1.75 Budget number of meals 3,900 meals Actual Kitchen Operations Expenses S 11.010 Actual number of meals 3,400 meals Spending Variance for Kitchen Operations S215 Unfavorable Given the reported variance. the organization's budgeted fixed cost per month would be closest to: A. S 3,970 B. 4,400 C.S4,845 D. S5,275 E. None of the above. 14 Which of the following statements is false? A. Flexible budgets can be used when there is more than one cost driver B. The fixed component of a budget for a cost has no effect on its activity variance f actual activity exceeds budgeted activity, the activity variance for an expense will always be unfavorable. C. I D. When E. To understand performance better, actual results should be compared to the flexible budget. there is a favorable spending variance, actual activity must be less that budgeted activity

Explanation / Answer

Correct answer is $4845

Actual cost 11010 Less Spending variance 215 10795 Less Budgeted Variable cost 5950 (3400*1.75) Budgeted fixed cost per month 4845

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