Flexible budget variances show breakfast and dinners revenue are adverse, it means negative variances. Breakfast flexible budget variance is 11. the actual results is 759, and the flexible budget is 770, the reason of having this variances because the budget selling price set higher than the actual, budget selling price per cover is 7 but the actual selling price per cover is 6.9 there is 0.1variance between them, but the lower selling price let the cover sold increase 10covers, the total sales revenue lower than the budget selling revenue. The dinner flexible budget variance is 900, this is large variance, the actual result is 6600, the flexible budget is 7500, This variance is also because the budget selling price set higher than the actual, the budget selling price per unit is 25, and the actual selling price is 22, there is 3variance between them. The selling price reduces let the covers sold increase 50 covers.  There are some reasons that reduce the selling price to add more customers come. The restaurant in low season customers are not very much, or the weather is good, so the customers don’t want to eat indoor, or the hotel occupancy is not high as usual, so that there are not many customers resources, or the menu are not attract customers to come.  The restaurant use reduces the selling price to attract the customers, the customers increase, but the actual selling is not higher, instead lower than budget. That means this change is failed, the restaurant should use this results to find other ways to increase the profit.

Variable cost

Flexible budget variances show the lunch variable cost is adverse, it means negative variance. The budget variable cost per cover is 5, the actual variable cost per cover is 5.4, there is 0.4 variance per cover, and the budget covers sold are 150; the actual covers sold are 100. The actual variable cost are 540, the flexible variable cost are 500. Although the actual covers sold lower than budget covers sold, there is still 40 variance between actual and flexible...There are some reasons that may cause this variance. Internal reasons like the labour cost changed, lunch time is a very busy time, so the staffs may not enough, the restaurant should have some part-time staffs, and this can add the labour cost. During the cooking time, because of low skill staffs let the wastage more than before. External reasons like the raw material may increased the price, there are many possible reasons, like the weather changed and the raw material are not very fresh, the transport are not convenience, as a result the transport fee increased, or may be change the supplier let the raw material price increased,

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