Herrod Catering Uses Two Measures of Activity, Jobs and Meals

question 44

Multiple Choice

Herrod 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 $490 per month plus $109 per job plus $29 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 December to be 19 jobs and 129 meals, but the actual activity was 12 jobs and 112 meals. The actual cost for catering supplies in December was $5,630. The spending variance for catering supplies in December would be closest to:

• A) $584 F
• B) $672 F
• C) $584 U
• D) $672 U

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Definitions:

CPUs

Central Processing Units; the primary component of a computer that interprets and executes instructions from software and hardware.

Application Programming Interface

A set of rules and protocols that allows different software applications to communicate with each other.

Documentation

Description of the technical details of the software, how the code works, and how the user interacts with the program; in addition, all the necessary user documentation that will be distributed to the program’s users.

Inheritance

In object-oriented programming, it is a mechanism where a new class is derived from an existing class, inheriting properties and behaviors.