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Carson's Wedding Cakes Corp. makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates
Carson's Wedding Cakes Corp. makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its ABC system: Activity Cost Pools Activity Rate Baking $1.50 per ounce of ingredient Design $10 per decoration used Packaging $25 per order Data concerning two recent orders appear below: Schwartz Wedding Graham Wedding Ounces of Ingredient 200 300 # Decorations on Cake 10 7 Cost of Ingredients + Labor in making a cake $50 $65 Based on the unit cake cost from applying Activity Based Costing, what is the total cost of the wedding cake for the Graham Wedding? a. $585 b. $545 c. $610 d. $475
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