Question
Stuchlik Catering uses two measures of activity, jobs and meals, in the cost formulas in its flexible budgets. The cost formula for catering supplies is
Stuchlik Catering uses two measures of activity, jobs and meals, in the cost formulas in its flexible budgets. The cost formula for catering supplies is $560 per month plus $82 per job plus $18 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 47 jobs and 225 meals, but the actual activity was 48 jobs and 229 meals. The actual cost for catering supplies in January was $8,700. The catering supplies in the planning budget for January would be closest to:
$8,546
$8,700
$8,618
$8,464
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