Groce Catering Uses Activity-Based Costing for Its Overhead Costs $\quad$

question 35

Multiple Choice

Groce Catering uses activity-based costing for its overhead costs. The company has provided the following data concerning the activity rates in its activity-based costing system:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Activity Cost Pools }$
$\begin{array} { | l | r | r | } \hline & \text { Preparing Meals } & \text { Arranging Functions } \\\hline \text { Wages } & \$ 0.70 & \$ 145.00 \\\hline \text { Supplies } & \$ 0.45 & \$ 230.00 \\\hline \text { Other expenses } & \$ 0.40 & \$ 100.00 \\\hline\end{array}$
The number of meals served is the measure of activity for the Preparing Meals activity cost pool. The number of functions catered is used as the activity measure for the Arranging Functions activity cost pool.

Management would like to know whether the company made any money on a recent function at which 150 meals were served. The company catered the function for a fixed price of $14.00 per meal. The cost of the raw ingredients for the meals was $8.75 per meal. This cost is in addition to the costs of wages, supplies, and other expenses detailed above.


-According to the activity-based costing system,what was the total cost (including the costs of raw ingredients) of the function mentioned above,rounded to the nearest whole dollar?

• A) $1,370.
• B) $1,520.
• C) $2,020.
• D) $2,220.

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Definitions:

Literacy Levels

The extent to which individuals have reading and writing skills, impacting their ability to communicate and access information.

Safety Violations

Acts or omissions that breach established safety protocols, potentially putting individuals at risk.

Productivity Levels

The rate at which goods or services are produced relative to the input of resources, often used as a measure of efficiency.

Moral Development

The process through which individuals develop their understanding of morality, ethical behaviors, and the distinction between right and wrong through various stages of life.