Question
Buehler Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 3,400 meals,
Buehler Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 3,400 meals, but the diner actually served 3,200 meals. The diner's director has provided the following cost formulas to use in budgets:
Fixed element per month variable element per meal
groceries......................................... $0 $2.80
kitchen operation............................ $5,300 $1.75
Administration.................................. $3,600 $0.75
Fundraising expenses...................... $1,500 $0.00
The director has also provided the diner's statement of actual expenses for the month:
Compute the activity variance for administrative expenses caused by serving less meals than expected. State answer as positive number.
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