Question

revise the data in your worksheet to reflect the results for the subsequent period as shown below:

Requirement 2 Revise the data in your worksheet to reflect the results for the subsequent period as shown below. 1 Chapter 9: Applying Excel 3 Data Revenue $ S 16.50 6.259 5 6 Cost of ingredients Wages and salaries Utilities $ 0.209 $ $ $ $ 10,400 800 2,200 600 Rent Miscellaneous 9 S 0.80 11 Actual results: 12 Revenue 13 Cost of ingredients 14 Wages and salaries Utilities $ $ $ $ $ $ 29,950 11,315 10,540 1,180 2.200 2,035 Rent Miscellaneous 17 18 19 Planning budget activity Actual activity 1.700 meals served 1.800 meals served 20

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)).

Answer 1

ANSWER

a)- The activity variance for revenue is =$1650 F

Explanation- Activity variance for revenue = Revenue in flexible budget- Revenue in planning budget

= (1800 meals served-1700 meals served)*$16.50 per meal

= $1650 F

b)- The spending variance for the cost of ingredients is = $65 U.

Explanation- Spending variance for the cost of ingredients = Cost of ingredients in flexible budget- Actual Cost of ingredients

= (1800 meals served*$6.25 per meal)-$11315

= $11250-$11315

= $65 U

c)- The spending variance for wages and salaries is = $140 U.

Explanation- Spending variance for the wages & salaries = Wages & salaries in flexible budget- Actual Cost of salaries & wages

= $10400- $10540

= $140 U

d)- The spending variance for total expenses is =$220 U.

Explanation-

Spending Variance
Particulars	Flexible Budget	Actual costs	Variances	Remark
	$	$	$
Total Expenses:-
Cost of ingredients	1800 meals*$6.25 =11250	11315	65	Favorable
Wages & Salaries	10400	10540	-140	Unfavorable
Utilities	(1800 meals*$0.20)+800 =1160	1180	-20	UnFavorable
Rent	2200	2200	0	None
Miscellaneous	(1800 meals*$0.80)+600 =2040	2035	5	Favorable
Total expenses	27050	27270	-220	UnFavorable

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