Business, 30.05.2020 19:59 cookies1164
The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $48. The a la carte option has a budgeted average price of $37 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $28 and the a la carte option averages $23 per meal in budgeted variable cost. The manager estimates that 2,000 people will order a meal in any month. For July, the restaurant served a total of 1,800 meals, including 700 buffet options. Total revenues were $34,300 for buffet meals and $41,800 for the a la carte meals. Required: a. Compute the activity variance for the restaurant for July. b. Compute the mix and quantity variances for July.
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