Perf.mgt

The actual free meals provision was $104,000. The budgeted amount was 18,250 x $5 = $91,250. The extra $12,750, is 14% of $91,250. The actual cost of overnight shelter is $223,380. The budgeted variable cost was 10,000 x ($30 - $5) = $250,000. The difference of $26,620 is 11% of the budgeted amount. The final part of your question relates to the advice centre. In the budget were 3,000 sessions but there were actually 3,500 sessions - this is given in the question (and $5 of the budgeted cost of $20 was a fixed cost and so only the remaining $15 was a variable cost).

Dear Sir, the first point is clear. As for the following: The budgeted variable cost was 10,000 x ($30 – $5) = $250,000. -I couldn't find any info about $5. 3,500 sessions – this is given in the question - I can't find it either. and $5 of the budgeted cost of $20 was a fixed - how do we find out that it is fixed? Sorry, but I really can't understand...

But the question says that the fixed cost for overnight shelter is $5 per night!! Same with the advice sessions - it says so in the question!

I'm afraid, the problem in my book is described incompletely...

I don't know which book you are using, but if you search for the question using Google you should be able to find the original exam question (which did have the full information).

Good idea, I 'll search it. Thank you for your time, Sir.

You are welcome :-)