Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $400 per month plus $90 per job plus $10 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 September to be 15 jobs and 145 meals, but the actual activity was 11 jobs and 142 meals. The actual cost for catering supplies in September was $2,710. The catering supplies in the planning budget for September would be closest to:

$3,110
$3,200
$2,710
$2,810

Question

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Respuesta :

fatimakincsem fatimakincsem · Answer 1 · 2019-07-24T01:53:38+02:00

Answer:

The correct answer would be option B, $3200.

Explanation:

Catering supplies = $400 per month

$90 per job Activity

$10 per meal

Expected activities OR Planning Budget of catering supplies would be:

Expected Job activity= 15

Expected Meals = 145

So Cost associated with them are as follows:

Expected Job Activity cost = 15 * 90

= 1350

Expected Meal Cost = 145 * 10

= 1450

Now Total catering supplies in the planning budget for September would be:

Catering Supplies + Expected Job Activity Cost + Expected Meal Cost

= 400 + 1350 + 1450

= $3200