Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

00 8 Nissley Wedding Fantasy Corporation makes very laborate wedding cakes to order. The owner of the company provided the following concerning the activity rates

image text in transcribed
image text in transcribed
00 8 Nissley Wedding Fantasy Corporation makes very laborate wedding cakes to order. The owner of the company provided the following concerning the activity rates in its activity based costing wstem Activity Cost Poots Activity Rate Size-related $ 1.12 per guest Complexity-related $28.46 per tier Order-related $74.96 per order The measure of activity for the site rented activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The mease of complexity is the number of tiers in the cake. The active memure for the order related cost pool is the number of orders. Each wedding involves one order) The activity rates include the cost of raw ingredients such as fou, eggs and shortening The activity rates do not include the costs of purchased decorations such as miniature Matures and wedding bells, which are accounted for separately Data concerning two recent orders appear below Tijerina Tersky Wedding Wedding Number of reception guests 43 131 Number of tiers on the cake 2 4 Cost of purchased decorations for cake $29.50 $54.88 Assuming that all of the costs listed above are avoidable costs in the event that an order istmed downwhat amount would the company have to charge for the Tjerine wedding cake to just break even? Multiple Choice 00 8 on the cake Cost of purchased decorations for cake $29.50 $54.80 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down wit amount wedd the company to charge for the Torin wedding cake to just break even? Multiple Choice O 520554 529.50 326056 51456

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

More Books

Students explore these related Accounting questions

Question

please dont use chat gpt or other AI 4 5 5 .

Answered: 3 weeks ago

Question

Do you know how you will monitor progress?

Answered: 3 weeks ago