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Sharp Motor Company has two operating divisions - an Auto Division and a Truck Division. The company has a cafeteria that serv the employees of
Sharp Motor Company has two operating divisionsan Auto Division and a Truck Division. The company has a cafeteria that serv the employees of both divisions. The costs of operating the cafeteria are budgeted at $ per month plus $ per meal se The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peakperiod requirements. The Auto Division is responsible for of the pea period requirements, and the Truck Division is responsible for the other For June, the Auto Division estimated it would need meals served, and the Truck Division estimated it would need meals served. However, due to unexpected layoffs of employees during the month, only meals were served to the Auto Division. Another meals were served to the Truck Division as planned. The cafeteria's actual fixed costs for June totaled $ and its actual meal costs totaled $ Required: How much cafeteria cost should be charged to each division for June? Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to number of meals served to each division during the month. On this basis, how much cost would be allocated to each division June? Note: Round your intermediate calculations to decimal places.
Sharp Motor Company has two operating divisionsan Auto Division and a Truck Division. The company has a cafeteria that serv
the employees of both divisions. The costs of operating the cafeteria are budgeted at $ per month plus $ per meal se
The company pays all the cost of the meals.
The fixed costs of the cafeteria are determined by peakperiod requirements. The Auto Division is responsible for of the pea
period requirements, and the Truck Division is responsible for the other
For June, the Auto Division estimated it would need meals served, and the Truck Division estimated it would need
meals served. However, due to unexpected layoffs of employees during the month, only meals were served to the Auto
Division. Another meals were served to the Truck Division as planned.
The cafeteria's actual fixed costs for June totaled $ and its actual meal costs totaled $
Required:
How much cafeteria cost should be charged to each division for June?
Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to
number of meals served to each division during the month. On this basis, how much cost would be allocated to each division
June?
Note: Round your intermediate calculations to decimal places.
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