Oaks Company Maintains a Cafeteria for Its Employees

question 47

Multiple Choice

Oaks Company maintains a cafeteria for its employees. For June, variable food costs were budgeted at $48 per employee based on a budgeted level of 1,000 employees in other departments. During the month, an average of 1,100 employees worked in other departments. The cafeteria's total food costs for the month came to $57,750. How much food cost should be charged to the other departments at the end of the month for performance evaluation purposes?

• A) $57,750
• B) $52,500
• C) $48,000
• D) $52,800

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