Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following two questions using information for Cavlin's Cake Company below: Catarina s Cake Company makes very elaborate wedding cakes to order for its

image text in transcribed
Answer the following two questions using information for Cavlin's Cake Company below: Catarina s Cake Company makes very elaborate wedding cakes to order for its customers. To determine he price of an order (each order consists of one cake), the company determines the cost of the cake. marks it up 25% and then rounds to the nearest dollar, Catarina's applies manufacturing overhead to each order using a predetermined overhead rate based on the number of reception guests for which the cake was ordered. The applied MOH is added to the cost of purchased decorations such as miniature statues and wedding bells (which are accounted for separately for each order) to determine the final cost. For the current period, MOH cost was estimated to be $ 29,208 and the total number of reception guests was estimated to be 10,000. 29209 Data concerning a recent order for the Zhou wedding appears below: 10000 - 29208 2.9208*72-210 Zhou Wedding Number of reception guests Number of tiers on the cake Cost of purchased decorations for the cake $ 29.92 What is the total price Catarina's will charge the Zhou family for this order if the cost of the cake is determined using its traditional job-order costing in which MOH costs are apprted to jobs using predetermined overhead rate based on number of reception guests? A $210 $300 $240 = (210.29+292)*1.25 D. $336 E. None of the above 29.92 210:29 cakes and Catarina's management

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

Cloud Computing Data Auditing Algorithm

Authors: Manjur Kolhar, Abdalla Alameen, Bhawna Dhupia, Sadia Rubab, Mujthaba Gulam

1st Edition

1946983144, 978-1946983145

More Books

Students also viewed these Accounting questions