The president of the organization, Rodney Snow, increased the invitation list to include 1,000 former members....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The president of the organization, Rodney Snow, increased the invitation list to include 1,000 former members. As a result, 4,000 invitations were mailed. 2. Attendance was 1,620 individuals. Because of higher-than-expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to $1,500. 3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $15.50 per person. 4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted. Required a. Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the master budget and the flexible budget. b. Compute flexible budget variances by comparing the flexible budget with the actual results. c. Mr. Snow was extremely upset with the budget deficit. He immediately called Ms. Hubbard to complain about the budget variance for the meal cost. He told Ms. Hubbard that the added dessert caused the meal cost to be $4,810 ($25,110 - $20,300) over budget. He added, "I could expect a couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next meeting of the budget committee, I want you to explain what happened." Assume that you are Ms. Hubbard. What would you tell the members of the budget committee? d. Since this is a not-for-profit organization, why should anyone be concerned with meeting the budget? The president of the organization, Rodney Snow, increased the invitation list to include 1,000 former members. As a result, 4,000 invitations were mailed. 2. Attendance was 1,620 individuals. Because of higher-than-expected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to $1,500. 3. At the last minute, Ms. Hubbard decided to add a dessert to the menu, which increased the meal cost to $15.50 per person. 4. Printing, decorations, the speaker's gift, and publicity costs were as budgeted. Required a. Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the master budget and the flexible budget. b. Compute flexible budget variances by comparing the flexible budget with the actual results. c. Mr. Snow was extremely upset with the budget deficit. He immediately called Ms. Hubbard to complain about the budget variance for the meal cost. He told Ms. Hubbard that the added dessert caused the meal cost to be $4,810 ($25,110 - $20,300) over budget. He added, "I could expect a couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next meeting of the budget committee, I want you to explain what happened." Assume that you are Ms. Hubbard. What would you tell the members of the budget committee? d. Since this is a not-for-profit organization, why should anyone be concerned with meeting the budget?
Expert Answer:
Answer rating: 100% (QA)
a To prepare a flexible budget we need to adjust the master budget for changes in activity level The master budget is based on 3000 invitations while ... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
Posted Date:
Students also viewed these accounting questions
-
The Westwood Management Association held its annual public relations luncheon in April 2013. 1Based on the previous years results, the organization allocated $25,200 of its operating budget to cover...
-
The Redmond Management Association held its annual public relations luncheon in April 2017. Based on the previous year's results, the organization allocated $25,290 of its operating budget to cover...
-
Analyzing not-for-profit entity variances The Midwest Management Association held its annual public relations luncheon in April 2012. Based on the previous year's results, the organization allocated...
-
The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company: Jan. 21. Sold merchandise on account to Black Tie Co., $28,000....
-
What problem would arise if in projecting cash flows for a capital budgeting decision on a project interest expense was not excluded?
-
Solve the equation. Write a reason for each step. x + 28 = -11 - 3x - 17
-
Using the Internet, find some universities that offer forensic accounting courses.
-
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
-
Steve and Carol Lee are your clients and they have come to you to prepare their tax retums. During the 2022-23 financial year, Steve and Carol disposed of the following that they owned jointly due to...
-
Aaron Hersch is a real estate developer who specializes in residential apartments. A complex of 20 run-down apartments has recently come on the market for $332,500. Hersch predicts that after...
-
Sheffield Corporation reports net income of $702,250 and a weighted-average of 265,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock. (Round answer...
-
Should an MNC purchase Nestl stock yes or no? Recommendations should include the company's sustainability plans, the image of the company, Gordon Growth result, and financial performance. Any...
-
Explain in your own words the meaning of each matrix mentioned in the video. 2.-Meditate. Now that you know the concept of strategic matrices, which matrix would be the most suitable for the company...
-
Identify if the account is a Asset, Liability, Equity, Expense or Income. Question 1 options: 12345 Notes Payable 12345 Commission Received 12345 Revenue from Transactions 12345 Cash with Business...
-
Select a hospital that publicly displays their financial performance on their website. Describe the Profit Loss Statement: Review top revenue items Review cost comparison compared to previous year...
-
3. A firm has decided to donate $3 million to its local school district to purchase computers for the school's students. The expected benefits from tax savings, reputation, etc... are likely to be $1...
-
A data set containing information for 45 mutual funds that are part of the Morningstar Funds 500 follows. The data set includes the following five variables: Fund Type: The type of fund, labeled DE...
-
What are the key elements of a system investigation report?
-
Glen Todd is considering whether to invest in a computer game machine that he would place in a hotel his brother owns. The machine would cost $34,000 and has an expected useful life of three years...
-
Helen Kaito, the president of Gladstone Toys Corporation, is trying to determine this year's pay raises for the store managers. Gladstone Toys has seven stores in the southwestern United States....
-
Chang Company has budgeted the following cash flows: Chang had an $18,000 cash balance on April 1. The company desires a $30,000 cash cushion before paying interest. Funds are assumed to be borrowed,...
-
Tobacco Leaf Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. It therefore is considering using a lockbox system offered by...
-
Your firm has an average receipt size of \($50.\) A bank has approached you concerning a lockbox service that will decrease your total collection time by three days. You typically receive 12,000...
-
Pete Moss, Inc., a large fertilizer distributor based in California, is planning to use a lockbox system to speed up collections from its customers located on the East Coast. A Philadelphia-area bank...
Study smarter with the SolutionInn App