Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company sells cakes for special occasions. It measures its output by the number of cakes produced. The company has provided the following foxed

image text in transcribed

A company sells cakes for special occasions. It measures its output by the number of cakes produced. The company has provided the following foxed and variable cost estimates that it uses for budgeting purposes. Revenue/Cost Revenue Employee salaries and wages Cake ingredients Other expenses Total expenses Net operating income Cost Formula Variable Fixed Cost per Revenue/Cost per Actual Results Month cake $90 $11.776 $1.250 $18 3,910 $35 4,400 $2,800 2.750 11.060 $716 When the company prepared its planning budget at the beginning of November, it assumed that 125 cakes would be sold, however the actual number of cakes sold in November was 128. The amount shown for Employee salaries and wages in the flexible budget for November would have been $1.268. $3,910 $3.554. O $3.500.

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

Step: 3

blur-text-image

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

Financial Accounting with IFRS Fold Out Primer

Authors: John Wild

5th edition

978-0077408770, 77408772, 978-0077413804

More Books

Students also viewed these Accounting questions

Question

=+Can information embedded within a content object be found easily?

Answered: 1 week ago

Question

Explain the factors that influence peoples values.

Answered: 1 week ago

Question

-4 1 9. Let A = Find A-1, (A") and verify that (A")= (A-1)".

Answered: 1 week ago