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Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Size-related Complexity-related Order-related Activity Rate $ 1.23 per guest $28.32 per tier $74.82 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. The cost of purchased decorations such as miniature statues and wedding bells is direct cost. Data concerning two recent orders appear below: Twersky Wedding Number of reception guests 124 Number of tiers on the cake 5 Number of order 1 Cost of purchased decorations for cake $ 54.74 Assuming that the company charges $491.44 for the Twersky wedding cake, what would be the margin on the order? Multiple Choice $122.50 $67.76 $142.58 $423.68
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