HARD DATA

As you look through the responses to your emailed requests for information, you recognize that much of the cost data are incompletemany expenses havent yet been paid from EAPC accounts. You determine that the best place to start your analysis is with the disastrous welcome dinner, since that bill has already been paid. Hopefully the dinner information will help you find out what went wrong. \

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: 60

(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.

Table 1. Daily Midpoint Exchange Rates

Date Cost of 1, in euros

December 1, 2014 1.25789

December 31, 2014 1.28261

May 19, 2015 1.38764

May 21, 2015 1.40346

You called the restaurant, and the manager confirmed that menu price changes take effect only once a year, in September.

4. 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 organizations budget). The exchange variance is based solely on the difference between budgeted exchange rate and the exchange rate actually used in paying the invoice.

Can someone provide the answer for this section on the problem or break it down.