Business, 24.04.2020 18:01 leandrogarin37p2g5ds

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires four people to serve an clean up. Cathy offers two types of parties, an afternoon picnic and an evening formal dinner. The breakdown of the costs follows:

Activities (and cost drivers) Afternoon Picnic Formal Dinner
Advertising (parties $100 per party $100 per party
Planning (parties) $75 per party $125 per party
Renting equipment $50 per party plus $75 per party plus
Renting equipment (parties, guests) $10 per guest $20 per guest
Obtaining insurance (parties) $200 per party $400 per party
Serving (parties, servers) $50 per server per party $75 per server per party
Preparing food (guests) $20 per guest $30 per guest
Per party costs do not vary with the number of guests.

Required
a. Compute the cost of a 20-guest afternoon picnic
b. Compute the cost of a 20-guest evening formal dinner.
c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 22:00

If a bond is issued at a premium the effective interest rate is most likely

Answers: 2

Answer

Business, 22.06.2019 04:30

How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )

Answers: 3

Answer

Business, 22.06.2019 05:00

Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.

Answers: 3

Answer

Business, 22.06.2019 05:10

Suppose that the free states of eldricia, a small nation, has consumption, investment, government purchases, imports, and exports as follows. consumption $140 investment $50 government purchases $45 imports $30 exports $15 calculate the free states of eldricia's gdp

Answers: 2

Answer

You know the right answer?

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of he...

Questions