Wember Catering Uses Two Measures of Activity, Jobs and Meals

question 163

Multiple Choice

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 $550 per month plus $77 per job plus $13 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 18 jobs and 148 meals, but the actual activity was 14 jobs and 145 meals. The actual cost for catering supplies in September was $3,340. The catering supplies in the planning budget for September would be closest to:

• A) $3,890
• B) $3,860
• C) $3,340
• D) $3,513

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Definitions:

Aquifers

Geological formations that can store, transmit, and yield water to a well or spring.

Water Scarcity

The condition where the availability of water resources is insufficient to meet the demands of a region's population.

Dessication

the process of drying out or dehydrating, often leading to the death of plants and animals in an ecosystem.

Deforestation

The large-scale removal of trees from forests or jungles, often to clear land for agricultural, residential or commercial development.