Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Groce Catering uses activity - based costing for its overhead costs. The company has provided the following data concerning the activity rates in its activity

Groce Catering uses activity-based costing for its overhead costs. The company has provided the following data concerning the activity rates in its activity-based costing system:
Activity Cost Pools
Preparing Meals
Arranging Functions
Wages
$0.70
$145.00
Supplies
$0.45
$230.00
Other expenses
$0.40
$100.00
The number of meals served is the measure of activity for the Preparing Meals activity cost pool. The number of functions catered is used as the activity measure for the Arranging Functions activity cost pool.
Management would like to know whether the company made any money on a recent function at which 150 meals were served. The company catered the function for a fixed price of $14.00 per meal. The cost of the raw ingredients for the meals was $8.75 per meal. This cost is in addition to the costs of wages, supplies, and other expenses detailed above.
According to the activity-based costing system, what was the total cost (including the costs of raw ingredients) of the function mentioned above, rounded to the nearest whole dollar?
Question 5 options:
$2,020.
$1,370.
$1,520.
$2,220.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions

Question

Explain how liability affects delegation.

Answered: 1 week ago

Question

What can be done to change the health habits of populations?

Answered: 1 week ago