1. Prepare a more useful variance analysis, and include it with your financial analysis. Your analysis should include the total budget variance as well as its price/rate/spending and quantity/efficiency component. The following format might be helpful:

Account	Actual cost	Flexible budget	Total Budget Variance	Price/Rate Variance	Qty/Efficiency Variance
Dough	$302.40
Filling/spices	$1,008.00
Iguana Meat	$5,241.60
Direct labor	$2,244.00
Variable OH	$1,893.00
Total	$10,689.00

Budgeted Production 2,500 pasties Direct materials Dough$275 (0.25 Lbs. @ $0.44/Lb. x 2,500) Filling/spices$900 (0.75 Lbs. @ $0.48/Lb. x 2,500) Iguana meat--$5,000 (1/16 Lb. @ $32.00/Lb. x 2,500) Direct Labor $2,250 (0.05 DLH@ $18.00/Hr. x 2,500) VOH $1,875 (VOH allocated at $15.00 per DLH x 125 DLH) Actual June performance of the central pastie kitchen: Actual Production 2,400 pasties Direct materials Dough$302.40 (0.30 Lbs. @ $0.42/Lb. x 2,400) Filling/spices$1,008.00 (0.70 Lbs. @ $0.60/Lb. x 2,400) Iguana meat--$5,241.60 (.91 oz. @ $2.40/oz. x 2,400) Direct Labor $2,244.00 (0.055 DLH@ $17.00/Hr. x 2,400) VOH $1,893.00 Dave and his grandkids sit down and compare the actual numbers to the budget, and this is what they see: UP Dining Concepts Kitchen Performance Report For the Month of June Actual Budget Variance Dough--$302.40 Dough--$275.00 $ 27.40 U Filling/spices-- $1,008.00 Filling/spices-- $900.00 $ 108.00 U Direct Materials Iguana meat--$5,241.60 Iguana meat--$5,000.00 $ 241.60 U Direct labor $2,244.00 $2,250.00 $ 6.00 F Variable OH $1,893.00 $1,875.00 $ 18.00 U Total $10,689.00 $10,300.00 $ 389.00 U