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Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests
Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties--an afternoon picnic and an evening formal dinner. The breakdown of the costs follows Activities and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $ 101 per party $ 101 per party Planning (parties) $ 98 per party $ 120 per party Renting equipment (parties, guests) $.45 per party plus $13 per guest $ 66 per party plus $21 per guest obtaining insurance (parties) $170 per party $ 450 per party Serving (parties, servers) $ 55 per server per party 5 71 per server per party Preparing food quests) $ 19 per guest $ 34 per guest Per party costs do not vary with the number of guests, Required: a. Compute the cost of a 20 guest afternoon picnic b. Compute the cost of a 20-guest evening formal dinner c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the cost of a 20-guest afternoon picnic Alternoon picnic Required Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the cost of a 20-guest evening formal dinner, Evening formal dinner Complete this question by entering your answers in the tabs below. Required A Required B Required C How much should Cathy charge for each guest for each type of party if she wants to cover her costs? (Round your answers to 2 decimal places.) Charging Amount Afternoon picnic per guest Formal dinner per guest
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