Tapas By Tom (TBT) is a high-end restaurant. TBT offers two dining options. A fixed-price menu has a budgeted meal price of $60. An a la carte menu has a budgeted price of $40 for a meal. TBT expects that one-third of its diners will order the fixed-price menu. The fixed-price menu has a budgeted variable cost of $20 and the a la carte meal averages $16 per meal in budgeted variable cost. TBT estimates that 1,200 people will order a meal in any month.

For July, TBT served a total of 1,080 meals, including 324 fixed-price meals. Total revenues were $17,820 for fixed-price meals and $34,020 for a la carte meals.

Required

a. Compute the activity variance for TBT for July.

b. Compute the mix and quantity variances for July.