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 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