Question: Community General Hospital has a Food Services Department that provides meals for all patients in the hospital. Budgeted and actual meals served for the month just ended are:
Meals Served
Budgeted Actual
Pediatrics Department 31,100 25,100
Surgical Department 51,100 77,100
Total meals 82,200 102,200
The budgeted variable cost of meals for the month just ended was $131,520; the actual variable cost of meals for the month was $168,630.
How much of the $168,630 actual Food Services variable cost should be charged to the Surgical Department at the end of the month just completed?