Costs Separation and Decision Making Restaurant Sedap Gila is a catering company that serves food and beverages at parties and business functions. Sedap Gila's business is seasonal, with a heavy scheduling during the summer months and holidays and a lighter schedule at other times. One of the major events Scdap Gila's customer request is a cocktail party. She offers a standard cocktail party has estimated the cost per guest as follows: Food and beverages Labour (0.5 hour@ RM9.80/hour Overheard (O.Shour @ RM18.54/hour Total cost per guest RM16.OO RM4.90 RM927 RM30.17 The standard cocktail party lasts three hours and Sedap Gila hires one worker for every six guests, so that works out to one and a half-hour of labour per guest. These workers arc hired only as needed and are paid only for the hours they actually work. When bidding on cocktail parties, Sedap Gila adds a 14% mark-up to yield a price of about RM32.00 per guest. She is confident about the estimates of the costs of food and beverages and labour but is not as comfortable with the estimate of overhead cost. The RM18,54 overhead cost per labour hour was determines by providing total overhead exFnses for the last 12 months by total labour-hour for thc same Exriod.