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

question 20

Multiple Choice

Grodt 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 }$
$\begin{array} { | l | r | r | } \hline & \text { Preparing Meals } & \text { Arranging Functions } \\\hline \text { Wages } & \$ 0.85 & \$ 110.00 \\\hline \text { Supplies } & \$ 0.50 & \$ 310.00 \\\hline \text { Other expenses } & \$ 0.30 & \$ 120.00 \\\hline\end{array}$ 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 60 meals were served. The company catered the function for a fixed price of $19.00 per meal. The cost of the raw ingredients for the meals was $8.60 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) $505.
• B) $655.
• C) $1,155.
• D) $1,355.

Identify the steps involved in utilizing the GE/McKinsey Grid for strategic analysis.

Recognize the characteristics that define a well-managed portfolio according to the BCG Matrix.

Understand the market growth and market share dynamics of different categories within the BCG Matrix.

Comprehend the concept of market attractiveness and the factors contributing to it.

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Definitions:

Norms

Accepted standards or ways of behaving in a group, society, or culture, which guide the actions and expectations of its members.

Lifestyles

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Supply Side

Economic theory emphasizing the importance of policies that affect the production and supply in an economy, including investment in capital and labor efficiency.