Planning, Coordinating, and Control

The Jordan Management Association held its annual public relations luncheon in April Year 2. Based on the previous years results, the organization allocated $25,842 of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hubbard, the treasurer, prepared the following budget for the Year 2 luncheon.

The budget for the luncheon was based on the following expectations:

The meal cost per person was expected to be $12.70. The cost driver for meals was attendance, which was expected to be 1,490 individuals.
Postage was based on $0.62 per invitation and 3,450 invitations were expected to be mailed. The cost driver for postage was number of invitations mailed.
The facility charge is $1,900 for a room that will accommodate up to 1,600 people; the charge for one to hold more than 1,600 people is $2,400.
A fixed amount was designated for printing, decorations, the speakers gift, and publicity.

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