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Meade Nuptial Bakery makes very laborate wedding cakes to order. The company has an activity based costing system with three activity cost pools. The activity
Meade Nuptial Bakery makes very laborate wedding cakes to order. The company has an activity based costing system with three activity cost pools. The activity rate for the Size Related activity cost pool is $132 per quest. The greater the number of guests, the larger the cake) The activity rate for the Complexity. Related cost pool is $3162 por Bet (Cakes with more tiers are more complex) Finally, the activity rate for the Order-Related activity cost pool is $81.33 per ordet (Each wedding involves one order for a cake) The activity rates include the costs of raw ingredients such as flour, supor, eggs and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately Data concerning two recent orders appear below Ericson Haupt Wedding Wedding Number of reception questo 73 249 Number of tiers on the cake 9 6 Cont of purchased decorations for cake 19.45 $ 29.05 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
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