Woodside charity

Woodside is a local charity dedicated to helping homeless people in a large city. The charity owns and manages shelter that provides free overnight accommodation for up to 30 people, offers free meals each and every night of the year to homeless people who are unable to buy food, and runs a free advice centre to help homeless people to find suitable housing and gain financial aid. Woodside depends entirely on public donations to finance its activities and had a fundraising target for the last year of $700 000. The budget for the last year was based on the following forecast activity levels and expected costs.

free meals – 18250 meals at $5 overnight
shelter – 10000 bed nights at $30 per night
advice centre – 3000 sessions at $20
campaigning and advertising – $150000

The number of free meals and the number of beds occupied each night depends on both the weather and the season of the year. The Woodside charity has three full-time staff and a large number of voluntary helpers.

The actual amount of funds raised in the last year was $620 000

An operating statement has been prepared as follows:

budget surplus 98750
funding shortfall (80000)
Net 18750

variancies:
FREE MEALS
price 4000(A)
usage 8750 (A)

OVERNIGHT SHELTER
price 4380 (A)
usage 31000 (F)

ADVICE CENTER
price 9100 (A)
usage 7500 (A)

CAMPAIGNING AND ADVERTISING
expenditure 15000 (A)

FIXED COSTS
expenditure 18000 (A)

total Favorable – 31 000
total Adverse – 66 730
Net – (35 730)

Actual shortfall (16 980)

Required:
(a) Discuss the charity’s performance over the last year.

The following is not clear to me:

If it is written in Workings, that Free meals provision cost 12750 (14%) more than budgeted and this is a 14% of (18250 * 5),Then, why variable cost of overnight shelter 26620 (11%) less than budgeted. Why 11%? Variable advice centre 16600 (37%) above budget. Why 17%? It is written: This was due to increased usage of service which was up from 3000 to 3500( Where is this described in problem? ) and average cost rising from $15 to $17. 60( Where is this described in the problem? )