Question

Brooks Corporation has a Food Services department that provides food for employees in all other departments of the company. For September, variable food costs were budgeted at $4 per meal, based on 14,000 meals served during the month. At the end of the month, it was determined that 15,000 meals had been served at a total cost of $70,000. What is the amount of the variable food costs that should be charged to the other departments of the company at the end of the month

Answer 1

To calculate the variable food costs to be charged to other departments, multiply the actual number of meals served (15,000) by the budgeted cost per meal ($4), resulting in $60,000.

Step-by-step explanation:

The student is asking about how to allocate variable food costs for a service department within a company. In this case, Brooks Corporation had budgeted its variable cost at $4 per meal for an expected 14,000 meals in September but ended up serving 15,000 meals. To calculate the variable food costs to be charged to other departments, we would multiply the actual number of meals served by the budgeted variable cost per meal.

Therefore, the calculation is as follows:

Variable Cost per Meal = $4

Actual Meals Served = 15,000 meals

Total Variable Food Costs = Actual Meals Served X Variable Cost per Meal

Total Variable Food Costs = 15,000 meals x $4/meal

Total Variable Food Costs = $60,000

This is the amount that should be charged to the other departments for variable food costs.

Answer 2

the amount that should be charged for the other department is $60,000

Step-by-step explanation:

The computation of the amount that should be charged for the other department is shown below:

= Variable cost per meal × number of meals

= $4 × 15,000 meals

= $60,000

hence, the amount that should be charged for the other department is $60,000

So the same would be relevant