Question 11.RQ.2.11: The following extract is taken from the catering costs budge...
The following extract is taken from the catering costs budget of a company that provides training courses.
Number of delegates 120 170
Catering cost £1,470 £2,020
In a flexible budget for 185 delegates, the budget cost allowance for catering costs will be £ \boxed{ \ \ \ \ \ \ \ \ \ \ \ \ \ }
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In a flexible budget for 185 delegates the budget cost allowance for catering costs will be £2,185
Delegates £
170 2,020
120 1,470
50 550
Variable catering cost per delegate = £550/50 = £11
Fixed catering cost = £2,020 – £(170 × 11) = £150
Budget cost allowance for 185 delegates = £150 + £(185 × 11) = £2,185.