Question
Exercise 2-51 (Algo) Cost Behavior and Forecasting (LO 2-5) Trumball Catering served 5,900 meals last month. Trumball recorded the following costs with those meals: Variable
Exercise 2-51 (Algo) Cost Behavior and Forecasting (LO 2-5) Trumball Catering served 5,900 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used $ 12,100 Direct labor 26,300 Indirect materials and supplies 13,100 Utilities 6,070 Truck fuel and other variable costs 8,100 Fixed costs: Managers' salaries $ 38,200 Rent 23,700 Depreciation on trucks and equipment (straight-line, time basis) 17,100 Miscellaneous fixed costs 7,300 Required: Unit variable costs and total fixed costs are expected to remain unchanged next quarter. Calculate the unit cost and the total cost if 7,080 meals are served next quarter. Note: Round "Unit costs" answer to 2 decimal places.
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