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Check my work 6 10 Sharp Motor Company has two operating divisions-on Auto Division and a Truck Division. The company has a cafeteria that serves
Check my work 6 10 Sharp Motor Company has two operating divisions-on Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $75,000 per month plus 50 90 per meal served The company Days all the cost of the meals The fixed costs of the cafeteria are determined by peak period requirements. The Auto Division is responsible for 64% of the peak period requirements, and the Truck Division is responsible for the other 36% For June, the Auto Division estimated it would need 91000 meals served, and the Truck Division estimated it would need 61,000 meals served. However due to unexpected layoffs of employees during the month, only 61000 meals were served to the Auto Division Another 61.000 meals were served to the Truck Division as planned The cafeterias actus fed costs for June totaled $81,000 and its actual meal costs totaled $125 800 Required: 1 How much cafeteria cost should be charged to each division for June 2. Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to the number of meas served to each division during the month. On this basis, how much cost would be allocated to each division for June? (Round your intermediate calculations to 2 decimal places) . AM Omalo The Dvor to contro 2 Taco Bocaled
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