Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Grogam 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

. Grogam 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

Arranging

Meals

Functions

Wages

$1.15

$110.00

Supplies

$0.35

$380.00

Other Expenses

$0.25

$

70.00

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 100 meals were served. The company catered the function for a fixed price of $21.00

per meal. The cost of the raw ingredients for the meals was $8.25 per meal. This cost is in addition to the costs of wages, supplies,

and other expenses detailed above.

For the purposes of preparing action analyses, management has assigned ease of adjustment codes to the costs as follows: wages are

classified as a Yellow cost, supplies and raw ingredients as a Green cost, and other expenses as a Red cost.

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?

A)

$

910.

B)

$1,060.

C)

$1,560.

D)

$1,760.

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

Hospitals What They Are And How They Work

Authors: Don Griffin, Donald J Griffin

3rd Edition

076372758X, 9780763727581

More Books

Students also viewed these Accounting questions