Question
Vermilion Foods prepares and sells two gourmet pre-cooked packaged meals: 'Chicken Jalfrezi and 'Vegetable Biryani'. The company recently adopted an activity-based costing system in which
Vermilion Foods prepares and sells two gourmet pre-cooked packaged meals: 'Chicken Jalfrezi and 'Vegetable Biryani'. The company recently adopted an activity-based costing system in which they identified two activities: (1) cooking, and (2) packaging. Each respective meal is cooked in large batches, and then individual meals are packaged for sale.
The cost driver for cooking is the number of batches, and the cost driver for packaging is the number of meals packaged. Production information for the most recent month was as follows:
Chicken Jalfrezi | Vegetable Biryani | |
Meals produced | 15,000 meals | 5,000 meals |
Prime costs (i.e., DM + DL) per meal | $1.40 / meal | $2.70 / meal |
# of meals per batch | 150 meals / batch | 125 meals / batch |
During the most recent month, total packaging costs were $18,000. If the per meal cost of 'Chicken Jalfrezi' was $2.80 per meal, what was the per meal cost of 'Vegetable Biryani'? [Enter your answer with two decimal points; i.e., in dollars and cents]
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