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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

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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 in its activity-based costing system: Activity Cost Pools Size-related Complexity-related Order-related Activity Rate $ 1.17 per guest $28.26 per tier $74.76 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 46 121 Number of tiers on the cake 24 Cost of purchased decorations for cake $28.50 $54.68 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 Tijerina wedding cake to just break even? Multiple Choice $74.76 $254.61 $28.50 $213.60 The following are Silver Corporation's unit costs of making and selling an item at a volume of 9,700 units per month (which represents the company's capacity): Manufacturing: Direct materials Direct labor Variable overhead Fixed overhead Selling and administrative: Variable Fixed $ 2.80 $ 3.80 $ 2.30 $ 0.75 $ 3.80 $ 1.15 Present sales amount to 6,900 units per month. An order has been received from a customer in a foreign market for 2,800 units. The order would not affect regular sales. Total fixed costs, both manufacturing and selling and administrative, would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume that direct labor is a Assume the company has 90 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale of these defective units will have no effect on the company's other sales. Which of the following costs is relevant in this decision? Multiple Choice 0 $9.65 unit product cost 0 0 $8.90 variable manufacturing cost 0 $3.80 variable selling and administrative cost

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