Revise the data in your worksheet to reflect the results for the subsequent peri

Question

Revise the data in your worksheet to reflect the results for the subsequent period as shown below:

a. What is the activity variance for revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

b. What is the spending variance for the cost of ingredients? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

c. What is spending variance for wages and salaries? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

d. What is spending variance for total expenses? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

1 Chapter 9: Applying Excel 2 3 Data 4 Revenue $16.50 q 5 Cost of ingredients $6.25 q 6 Wages and salaries $10,400 7 Utilities $800 + $0.20 q 8 Rent $2,200 9 Miscellaneous $600 + $0.80 q 10 11 Actual results: 12 Revenue $29,120 13 Cost of ingredients $11,450 14 Wages and salaries $10,330 15 Utilities $1,175 16 Rent $2,200 17 Miscellaneous $2,025 18 19 Planning budget activity 1,700 meals served 20 Actual activity 1,800 meals served

Explanation / Answer

a Activity variance for revenue = (1800*16.50)-(1700*16.50)= 1650 F b Spending variance for the cost of ingredients = 11450-(1800*6.25)= 200 U c Spending variance for wages and salaries =10330-10400= 70 F d Actual total expenses = 11450+10330+1175+2200+2025= 27180 Flexible budget total expenses = (1800*6.25)+10400+800+(1800*0.2)+2200+600+(1800*0.8)= 27050 Spending variance for total expenses = 27180-27050=130 U

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