Lindon Hospital has a Food Services Department that provides meals for all patients in the hospital. Budgeted and actual meals served for June follow: The budgeted variable cost of meals for June was $75,000; the actual variable cost of meals for the month was $97,500.
-How much of the actual Food Services cost for June should be kept in the Food Services Department and not be charged to the other departments for performance evaluation purposes?
A)$22,500
B)$3,000
C)$3,750
D)$0

Question

Lindon Hospital has a Food Services Department that provides meals for all patients in the hospital. Budgeted and actual meals served for June follow:  The budgeted variable cost of meals for June was $75,000; the actual variable cost of meals for the month was $97,500.
-How much of the actual Food Services cost for June should be kept in the Food Services Department and not be charged to the other departments for performance evaluation purposes?
A)$22,500 
B)$3,000 
C)$3,750 
D)$0

Quizplus · Accepted Answer

Budgeted variable cost per meal = $75,000 F1F1F1S1F1F1F10 60,000 meals = $1.25 per meal
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Lindon Hospital Has a Food Services Department That Provides Meals