Suffolk Diner is a restaurant located in Beacon Hill. The diner's budget for November was based on 5,000 meals which are budgeted at $12 each. The diner's manager has provided the following cost data to use in the budget:

Expense Category	Fixed Component Per Month	Variable Component Per Meal
Groceries		$2.15
Kitchen Operations	$5,000	$1.55
Administrative Expense	$3,500	$0.30
Rent Expense	$4,200

The manager has also provided the diner's statement of actual results for the month:

Suffolk Diner Statement of Actual Results for the Month Ended November 30
Actual meals	4,700
Total revenues	$ 57,550
Groceries	$ 9,280
Kitchen operations	$ 13,350
Administrative expenses	$ 4,880
Rent expense	$ 4,290
Total expenses	$ 31,800
Net Operating Income	$ 25,750

Required: Prepare a flexible budget performance report showing both the activity variances and the revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U).

Suffolk Diner
Flexible Budget Performance Report
For the Month Ended November 30
	Actual Results	Revenue & Spending Variances	F or U?	Flexible Budget	Activity Variances	F or U?	Planning Budget
Net Operating Income

Answer rating: 100% (QA)

Requirement asked Actual Result Revenue Spending Variance ... View the full answer