Shiigi Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May is to be based on 3,320 meals. The diner's director has provided the following cost data to use in the budget: groceries, $4.00 per
meal; kitchen operations, $4,620 per month plus $1.75 per meal; administrative expenses, $3,820 per month plus $0.60 per
meal; and fundraising expenses. $1,720 per month
Required:
Prepare the diner's budget for the month of May. The budget will only contain the costs listed above; no revenues will be on the
budget.
Shiigi Urban Diner
Planning Budget
For the Month Ended May 31
Budgeted meals
3,320
Groceries
Kitchen operations
Administrative expenses
Fundraising expenses
Total expense

Shiigi Urban Diner

Diner's Cost Budget for the month of May:

                                               Fixed      Variable      Total

Budgeted meals = 3,320 units

Groceries                                  $0       $13,280     $13,280

Kitchen Operations              4,620          5,810       10,430

Administrative Expenses     3,820          1,992         5,812

Fundraising Expenses          1,720             0             1,720

Total                                   $10,160     $21,082     $31,242

Explanation:

Cost Data and Calculations:

Budgeted number of meals to serve = 3,320

Groceries = $4.00 per meal = $13,280 ($4 * 3,320)

Kitchen operations, $4,620 per month plus $1.75 per meal =

$4,620 + ($1.75 * 3,320) = 10,430

Administrative expenses, $3,820 per month plus $0.60 per  meal =

$3,820 + ($0.60 * 3,320) = $5,812

Fundraising expenses, $1,720 per month

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