You have been employed as a customer relations representative for a firm. Your firm encourages the employees of customers to visit your firm's plant to see how products are made. One of your responsibilities is to take customer-employee visitors to lunch. The budget allowance for these lunches is $6 per visitor. When the budget for November was prepared, it was estimated that 60 customer-employees would visit your plant that month. Early in December, the following information appeared in the performance report for your department:

	Budget	Actual	Variance	Variance %
Customer lunches	$360	$430	$70 U	19.4% U

Your records indicate that during November you actually took 72 visitors to lunch.

a. Explain how the budget amount was determined.

b. Evaluate the above performance report.

c. Prepare a more appropriate performance report.

Answer rating: 100% (QA)

a The budget amount of 360 was determined by multiplying the number of customer employ ee visitors e... View the full answer