(Appendix 12B)Kirston Company Operates a Free Cafeteria for the Benefit

question 13

Essay

(Appendix 12B)Kirston Company operates a free cafeteria for the benefit of its employees.Budgeted and actual costs in the cafeteria for last year are given below: The variable costs of the cafeteria are charged to operating departments on the basis of the number of employees in these departments.Data concerning last year are given below: The level of budgeted fixed costs in the cafeteria is determined by the peak-period requirements.
Required:
a.Compute the dollar amount of the variable and fixed costs that should have been charged to each of the operating departments at the end of last year for purposes of evaluating performance.
b.Identify the amount, if any, of actual cafeteria costs that should not be charged to the operating departments.

---

Definitions:

Degree of Control

The extent to which an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.

Resources Required

The necessary materials, funds, personnel, and other assets needed to carry out a project, initiative, or operation.

Environmental Performance

An evaluation of how well an organization or activity is managing its impact on the environment.

Disclosure of Corporations

Disclosure of corporations involves the act of making financial, operational, and governance-related information available to the public and regulatory bodies to ensure transparency and accountability.