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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 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 $17 and the a la carte option averages $12 per meal in budgeted variable cost. The manager estimates that 2,100 people will order a meal in any month. For July, the restaurant served a total of 1,900 meals, including 640 buffet options. Total revenues were $25,600 for buffet meals and $34,020 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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