Lindon Hospital Has a Food Services Department That Provides Meals

Multiple Choice

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 Food Services cost should be charged to the Surgical Department at the end of June for performance evaluation purposes?

A) $71,250
B) $74,100
C) $50,000
D) $52,000