Question
Trumball Catering served 4,200 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies
Trumball Catering served 4,200 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities Depreciation on trucks and equipment (straight- line, unit basis) Fixed costs: Managers salaries Rent Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs Total variable costs Total fixed costs Total costs Unit costs $ $ 10,400 22,900 9,700 3,860 3 7,000 Required: Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The controller at Trumball knows that if the business caters over 4,620 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,307 for the month. Miscellaneous fixed costs are expected to increase by 15 percent. Calculate the unit cost and the total cost if expectations for costs and volume are met next month. Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places. $29,700 15,200 8,600 3,900
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