Problem 17-32 Analyze Performance for a Restaurant (LO 17-5) Doug's Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug's, which contains a delicatessen and restaurant operation, follows (in thousands): Delicatessen Restaurant Total $600 $1,250 $1,850 Sales revenue Costs 500 435 860 465 57 150 105 360 Purchases Hourly wages Franchise fee Advertising Utilities Depreciation Lease cost Salaries 18 50 100 63 38 25 15 15 25 Total costs $555 1,225 $1,780 Operating prof 45 25 S 70 The company uses the folowing performance report for management evaluation: DOWNTOWN DOUG'S Net Income for the Year ($000) Actual Results Over-or $(150) s (10) Actual Results Delicatessen Restaurant Total Budget (Under-) Budget Sales revenue $700 $1,000 $1.700 $1.850 850 385 51 150 95 400 350 Purchasesb 450 860 Hourly wages 35 Franchise feob21 Advertising Utilitiesb Depreciation Lease cost (80) 150 105 63 100 50 25 15 (10) 25 Total costs $656 $1,018 $1,674 $1,780 S(106) s (44) Operating proft 44 (18) S 26 70 a There is no sales price variance. b Variable costs; all other costs are fixed