Akes Urban Diner is a charity supported by donations

by | Mar 18, 2020 | Uncategorized

  
Akes Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner’s budget for August was based on 2,200 meals. The diner’s director has provided the following cost data to use in the budget: groceries, $3.65 per meal; kitchen operations, $5,400 per month plus $1.85 per meal; administrative expenses, $2,900 per month plus $0.55 per meal; and fundraising expenses, $1,700 per month. The director has also provided the diner’s statement of actual expenses for the month:

Akes Urban Diner

Statement of Expenses

For the Month Ended August 31

Actual meals…………………..2600

Groceries……………………..$9890

Kitchen operations…………..9710

Administrative expenses…..4270

Fundraising expenses………1700

Total expense………………$25570

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).
  

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