Stuchlik Catering Uses Two Measures of Activity,jobs and Meals,in the Cost

question 3

Multiple Choice

Stuchlik Catering uses two measures of activity,jobs and meals,in the cost formulas in its budgets and performance reports.The cost formula for catering supplies is $430 per month plus $80 per job plus $14 per meal.A typical job involves serving a number of meals to guests at a corporate function or at a host's home.The company expected its activity in January to be 20 jobs and 190 meals,but the actual activity was 21 jobs and 194 meals.The actual cost for catering supplies in January was $4,850.The catering supplies in the planning budget for January would be closest to:

• A)$4,850
• B)$4,619
• C)$4,690
• D)$4,826

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Definitions:

Annual Income

The total amount of income received in a year from all sources before taxes and other deductions.

Square Foot

A unit of area measurement equal to the area of a square with sides of one foot in length.

Family Size

A demographic term that refers to the number of individuals in a household, including parents and children.

Adjusted Coefficient

A statistical measure that has been modified to account for various factors or variables, improving its accuracy or relevance.