Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the e mployees of both

image text in transcribed
image text in transcribed
Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the e mployees of both divisions. The costs of operating the cafeteria are The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 68% of the peak-period requirements, and the Truck Division is responsible for the other 32%. For June, the Auto Division estimated that it would need 98,000 meals served, and the Truck Division estimated that it would need 68,000 meals served. However, due to unexpected layoffs of employees during the month, only 68,000 meals were served to the Auto Division. Another 68,000 meals were served to the Truck Division as planned Cost records in the cafeteria show that actual fixed costs for June totaled $90,000 and that actual meal costs totaled $82,000 Required: 1. How much cafeteria cost should be charged to each division for June? Truck Auto Division Division Total cost charged

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

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago