Leslie Company Operates a Cafeteria for the Benefit of Its

question 40

Essay

Leslie Company operates a cafeteria for the benefit of its employees.The company subsidizes the cafeteria heavily by allowing employees to purchase meals at greatly reduced prices.Budgeted and actual costs in the cafeteria for the year just ended are as follows:
*Unrecovered cost after deducting amounts received from employees.
Costs of the cafeteria are charged to producing departments on the basis of the number of employees in these departments.Fixed costs are charged on the basis of the percentage of peak-period requirements.Data concerning the company's producing departments follows:
Required:
a.Compute the dollar amount of variable and fixed costs that should be charged to each of the producing departments at the end of the year for purposes of evaluating performance.
b.Identify the amount,if any,of actual costs that should not be charged to the operating departments.

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Definitions:

Living Conditions

The circumstances or factors affecting the way in which people live, including their housing, health, and ability to meet basic needs.

Social Entrepreneurship

The practice of creating businesses with the primary goal of achieving social impact rather than maximizing profits alone.

Multiple Sources

Relying on or referring to more than one origin or point of information.

Government Contracts

Agreements entered into by government entities and private companies or individuals for the provision of goods, services, or execution of works.