Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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 $ 1.28 per guest $28.62 per tier $75.12 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 (Each wedding involves one order) The activity rates include the costs of raw ingredients such as flour, sugar, 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: Tijerina Twersky Wedding Wedding Number of reception guests 51 139 Number of ties on the cake 3 5 Cost of purchased decorations for cake S 30.30 $55.04 Assuming that the company charges 5569.59 for the Twersky wedding cake, what would be the overall margin on the order? Multiple Choice 519353 $45118 5173.45 Number of reception guests Number of tiers on the cake Cost of purchased decorations for cake 51 3 $30.30 139 5 $55.04 Assuming that the company charges $569.59 for the Twersky wedding cake, what would be the overall margin on the order? Multiple Choice $193.53 $45118 $17345 $118.41

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

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

5th Edition

0072975865, 978-0072975864

More Books

Students also viewed these Accounting questions