Adam Gase Diner is a charity supported by donations that provides free meals to the homeless Jets Fans and Crying Jets fan Accounting Professors. The diner's budget for May was based on 2,700 meals, but the diner actually served 2,900 meals. Things never go quite as planned at this diner but Adam is promising to work hard. The diner's director, Joe "trade away all the best food" Douglas has provided the following cost data to use in the budget: groceries, $4.25 per meal; kitchen operations, $4,700 per month plus $1.73 per meal; administrative expenses, $3,700 per month plus $0.38 per meal; and fundraising expenses, $1,700 per month. The director has also provided the diner's statement of actual expenses for the month: Adamyan Urban Diner Statement of Expenses For the Month Ended May 31 Actual meals Groceries Kitchen operations Administrative expenses Fundraising expenses 2,900 $12,275 9,500 4,622 1,700 Total expense $28,097 Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Adam Gase Diner Activity Variances For the Month Ended May 31 Flexible Planning Budget 2,700 Activity Variances Budget Meals 2,900 Groceries Kitchen operations Administrative expenses Fundraising expenses Total expense
Adam Gase Diner is a charity supported by donations that provides free meals to the homeless Jets Fans and Crying Jets fan Accounting Professors. The diner's budget for May was based on 2,700 meals, but the diner actually served 2,900 meals. Things never go quite as planned at this diner but Adam is promising to work hard. The diner's director, Joe "trade away all the best food" Douglas has provided the following cost data to use in the budget: groceries, $4.25 per meal; kitchen operations, $4,700 per month plus $1.73 per meal; administrative expenses, $3,700 per month plus $0.38 per meal; and fundraising expenses, $1,700 per month. The director has also provided the diner's statement of actual expenses for the month: Adamyan Urban Diner Statement of Expenses For the Month Ended May 31 Actual meals Groceries Kitchen operations Administrative expenses Fundraising expenses 2,900 $12,275 9,500 4,622 1,700 Total expense $28,097 Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Adam Gase Diner Activity Variances For the Month Ended May 31 Flexible Planning Budget 2,700 Activity Variances Budget Meals 2,900 Groceries Kitchen operations Administrative expenses Fundraising expenses Total expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Adam Gase Diner is a charity supported by donations that provides free meals to the homeless Jets Fans and Crying Jets fan
Accounting Professors. The diner's budget for May was based on 2,700 meals, but the diner actually served 2,900 meals. Things
never go quite as planned at this diner but Adam is promising to work hard. The diner's director, Joe "trade away all the best food"
Douglas has provided the following cost data to use in the budget: groceries, $4.25 per meal; kitchen operations, $4,700 per month
plus $1.73 per meal; administrative expenses, $3,700 per month plus $0.38 per meal; and fundraising expenses, $1,700 per month. The
director has also provided the diner's statement of actual expenses for the month:
Adamyan Urban Diner
Statement of Expenses
For the Month Ended May 31
Actual meals
Groceries
Kitchen operations
Administrative expenses
Fundraising expenses
2,900
$12,275
9,500
4,622
1,700
Total expense
$28,097
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses for May. (Indicate the effect of each
variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as
positive values.)
Adam Gase Diner
Activity Variances
For the Month Ended May 31
Flexible
Planning
Budget
2,700
Activity Variances
Budget
Meals
2,900
Groceries
Kitchen operations
Administrative expenses
Fundraising expenses
Total expense
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