Be Careful Group has organized a social distancing gathering on September 16, 2020.
The cost estimates for the event are listed below.
Expected attendees: 40
Food: $1,200
Decorations: $100
Labor: $600
Hall Rental: $200
The actual costs are listed below.
Actual attendees: 50
Food: $1,450
Decorations: $105
Labor: $800
Hall Rental: $200
(1) Prepare a performance report with variances.
(2) Which items would you choose to investigate?
Statement of variance
Particulars | Estimated cost | Actual cost | Standard cost for actual input | Variance(Std cost-actual cost) |
Food(variable) | 1200 | 1450 | (1200/40)*50=1500 | 50 favorable |
Decoration(variable) | 100 | 105 | (105/40)*50=131.25 | 26.25 |
Labor | 600 | 800 | (600/40)*50=750 | 50 unfavarable |
Hall rental(fixed) | 200 | 200 | 200 | 0 |
Be Careful Group has organized a social distancing gathering on September 16, 2020. The cost estimates...
Be Careful Group has organized a social distancing gathering on September 16, 2020. The cost estimates for the event are listed below. Expected attendees: 40 Food: $1,200 Decorations: $100 Labor: $600 Hall Rental: $200 The actual costs are listed below. Actual attendees: 50 Food: $1,450 Decorations: $105 Labor: $800 Hall Rental: $200 (1) Prepare a performance report with variances. (2) Which items would you choose to investigate?