Question
Holmes Catering uses two measures of activity, jobs and meals, in its cost formulas for determining budgets and performance reports. The cost formula for catering
Holmes Catering uses two measures of activity, jobs and meals, in its cost formulas for determining budgets and performance reports. The cost formula for catering supplies is $594 per month plus $94 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in June to be 24 jobs and 105 meals, but the actual activity was 28 jobs and 98 meals. The actual cost for catering supplies in June was $5,810. The catering supplies in the flexible budget for June would be closest to:
A. | $105 | |
B. | $2,850 | |
C. | $5,578 | |
D. | $5,659 |
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