Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $540 per month plus $103 per job plus $34 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 11 jobs and 120 meals, but the actual activity was 6 jobs and 125 meals. The actual cost for catering supplies in December was $5,230. The spending variance for catering supplies in December would be closest to: A.$!78U B. $523U C. $523F D. $178F
Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $540 per month plus $103 per job plus $34 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 11 jobs and 120 meals, but the actual activity was 6 jobs and 125 meals. The actual cost for catering supplies in December was $5,230. The spending variance for catering supplies in December would be closest to: A.$!78U B. $523U C. $523F D. $178F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $540 per month plus $103 per job plus $34 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 11 jobs and 120 meals, but the actual activity was 6 jobs and 125 meals. The actual cost for catering supplies in December was $5,230. The spending variance for catering supplies in December would be closest to:
A.$!78U
B. $523U
C. $523F
D. $178F
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