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

question 96

Multiple Choice

Grogam 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 }$
$\begin{array}{|l|r|r|} \hline& \text { Preparing Meals } & \text { Arranging Functions } \\\hline \text { Wages } & \$ 1.15 & \$ 110.00 \\\hline \text { Supplies } & \$ 0.35 & \$ 380.00 \\\hline \text { Other expenses } & \$ 0.25 & \$ 70.00\\\hline \end{array}$
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 100 meals were served. The company catered the function for a fixed price of $21.00 per meal. The cost of the raw ingredients for the meals was $8.25 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) $910.
• B) $1,060.
• C) $1,560.
• D) $1,760.

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Definitions:

Real Number Line

A line that represents all real numbers in a continuous sequence, with positive numbers to the right of zero and negative numbers to the left.

Real Line

A one-dimensional space consisting of all the real numbers, visualized as a straight line where each point corresponds to a unique real number.

Inequality

A mathematical statement that shows the relationship between two expressions that are not equal, using symbols such as <, >, ≤, or ≥.

Real Line

The real line refers to a one-dimensional space where every point represents a real number, stretching infinitely in both positive and negative directions.