Question

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?

Answer 1

K G H I Performance Report Budget Actual Variance % Attendees 40 50 10 Food 1200 1450) 250 Decorations 100 105 5 Labour 600 800 200 Hall rent 200 200 01 25% 21% 5% 33% 0% Labour cost should be investigated as it has increased by 33%, while other items increase almost proportionaltely