Break down the price variance into a charge variance and an exchange variance. What do these variances tell you? Note that the charge variance is based solely on the difference between the budgeted price and actual price $($based on the currency rate used in the organization$$s budget$).$ The exchange variance is based solely on the difference between budgeted exchange rate and the exchange rate actually used in paying the invoice.

The data you have to work with, at least for now, are as follows:

Actual attendees: $1,234$

Expected attendees: $1,220$

Actual cost per dinner: $58$

Budgeted cost per dinner: $\backslash (60\backslash )$

$($The budget was set at the beginning of December $2014.)$

Dinner costs $($in British pounds$)$ were incurred on

May $19,$ the day of the event.

Dinner costs were invoiced and paid $($in euros$)$ on

May $21$ from EAPC accounts.

Daily midpoint exchange rate information are listed in Table $1.$