1. The activity variance (i.e. the variance that is due to the fact that the actual number of meals served is different from the planning budget)

Holbrook Memorial Diner is a charity that provides free meals to the homeless. The diner's manager has prepared the report presented below, which compares the planning budget to the actual costs for the month of February. The diner's manager was pleased with the results because total actual costs were less than budgeted