Question

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:

Answer 1

The catering supplies in the planning budget for September would be closest to $3,200

Step-by-step explanation:

In order to calculate the the catering supplies in the planning budget for September we would have to use the following formula:

catering supplies in the planning budget=The cost formula for catering supplies+cost per job×number of jobs+cost per meal×number of meals

catering supplies in the planning budget=($400+$90*15+145*$10) = $3,200

The catering supplies in the planning budget for September would be closest to $3,200