The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an...
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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 $37. The a la carte option has a budgeted average price of $26 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 $18 and the a la carte option averages $10 per meal in budgeted variable cost. The manager estimates that 2,400 people will order a meal in any month. For July, the restaurant served a total of 2,200 meals, including 860 buffet options. Total revenues were $32,680 for buffet meals and $38,860 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. Complete this question by entering your answers in the tabs below. Required A Required B Compute the activity variance for the restaurant for July. (Do not round intermediate calculations. Indicate the effect of ea variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Activity variance 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 $37. The a la carte option has a budgeted average price of $26 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 $18 and the a la carte option averages $10 per meal in budgeted variable cost. The manager estimates that 2,400 people will order a meal in any month. For July, the restaurant served a total of 2,200 meals, including 860 buffet options. Total revenues were $32,680 for buffet meals and $38,860 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. Complete this question by entering your answers in the tabs below. Required A Required B Compute the activity variance for the restaurant for July. (Do not round intermediate calculations. Indicate the effect of ea variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Activity variance
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To calculate the activity variance for the restaurant for July we need to compare the actual activity level meals served with the budgeted activity le... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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