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a large Super-Bowl party S the food ectable Delights is a catering firm. The firm provides party to all the drinks bitCotof the inputs to

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a large Super-Bowl party S the food ectable Delights is a catering firm. The firm provides party to all the drinks bitCotof the inputs to the process are fairly constant- food owever,naonally but labor costs have been very steady over the past few years. clients are prices in the indust try vary widely and are mostly set based on cost. For this cost information. Prices to eritieal for the fim to have aceurate quoted ents is cost times four. (drivers are igo, the firm implemented an ABC system. Four cost pools were identified vers are in parentheses): food preparation clean up (event) and food (number chef hours), food service (event hours), cost (number of people at the event. Because the cost of drinks epending on the type of service to be provided, this part of the service cost estimates were Total food cost Total service cost Total food preparation cost Total janitorial cost $1,875,000 943,000 543,900 329,000 ctivity levels were estimated as follows: 2,475 40 Number of events Average people per event Average time per event 4 hours Total chef hours Total server hours 1,200 6,000 The president of Funonia has contacted the firm family. He will invite 100 people. The party will begin at 6:00 p.m. an y midnight. DDD has discussed a menu that will require 5 chefs to work 3 hours each. The event will require 10 servers to work throughout the entire evening. about throwing a birthday party for hi d should be over Determine an overall cost per person served for the firm (that is traditional costing method). Based on this rate, what is the cost of the President's party? I. Using the ABC system the firm has implemented, determine the cost of the President's party 2. 3. What is the price based on the traditional costing system? 4. What is the price based on the ABC system? 5. Evaliste the ABC system for DDD, what do yeu beliere should be charged

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