Review Problem: Variance Analysis Using a Flexible Budget

2
3	Data
4	Revenue			$16.50	q
5	Cost of ingredients			$6.25	q
6	Wages and salaries	$10,400
7	Utilities	$800	+	$0.20	q
8	Rent	$2,200
9	Miscellaneous	$600	+	$0.80	q
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11	Actual results:
12	Revenue	$29,795
13	Cost of ingredients	$11,095
14	Wages and salaries	$10,270
15	Utilities	$1,115
16	Rent	$2,200
17	Miscellaneous	$2,020
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19	Planning budget activity	1,700	meals served
20	Actual activity	1,800	meals served

a. What is the activity variance for revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) b. What is the spending variance for the cost of ingredients? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) c. What is spending variance for wages and salaries? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) d. What is spending variance for total expenses? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)