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Please help. Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity based costing system with three activity cott pools.
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Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity based costing system with three activity cott pools. The activity rate for the Site Related activity cost pool is $115 per guest. The greater the number of guests, the larger the cake) The actory rate for the Complexity Related cost pool is $2875 pertier Cakes more tiers are more complex) Finally, the activity rate for the Order Related activity cost pool is $80 45 per ordet (Each wedding involves an order for a coke) The activity fates include the costs of raw ingredients such as flour, sugar, e991, and shortening. The activity rates do not include the cost of purchased decorations such as miniature states and wedding bols which are accounted for separately Data concerning two recent orders appear below Ericson Haupt Wedding Wedding Number of reception guests 71 155 Number of tiers on the cake 10 9 Cost of purchased decorations for cake 5 23.10 $81.93 Assuming that at of the costs sted above are avoidable costs in the event that an order is turned down what amount would the company we to charge for the Ericson wedang cake 10 Just break even Multi Chow $52420 SA05 547270 52110 Step by Step Solution
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