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Socha Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for January was based on 3,400 meals,but the diner actually served 3,800 meals.The diner's director has provided the following cost formulas to use in budgets: The director has also provided the diner's statement of actual expenses for the month:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses for January.Label each variance as favorable (F)or unfavorable (U).
Double Time
A rate of payment that is twice the regular wages, often paid for working on holidays or outside of normal working hours.
Time and a Half
An overtime pay rate, typically 1.5 times the employee's regular hourly wage, paid for hours worked beyond the standard workweek.
FICA Tax
Federal Insurance Contributions Act tax, a U.S. federal payroll tax funding Social Security and Medicare benefits.
Federal Income Tax
A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.
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