Groenen Catering Uses Activity-Based Costing for Its Overhead Costs

question 14

Multiple Choice

Groenen 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: 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 120 meals were served. The company catered the function for a fixed price of $20.00 per meal. The cost of the raw ingredients for the meals was $13.05 per meal. This cost is in addition to the costs of wages, supplies, and other expenses detailed above.
For the purposes of preparing action analyses, management has assigned ease of adjustment codes to the costs as follows: wages are classified as a Yellow cost; supplies and raw ingredients as a Green cost; and other expenses as a Red cost.

-Suppose an action analysis report is prepared for the function mentioned above.What would be the "red margin" in the action analysis report? (Round to the nearest whole dollar. )

• A)$(68)
• B)$32
• C)$(118)
• D)$182

Identify the impact of sudden changes in stimulus intensity on attention and reaction.

Recognize how environmental changes affect color perception.

Explain various persuasion techniques, including the door-in-the-face technique.

Trace the path of a visual stimulus from source to perception, illustrating the complex integration of sensory information.

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Definitions:

Between-Treatments Variation

The variability in data that is observed between the different groups or conditions in an experiment, helping to determine if there are significant differences caused by the treatment or intervention.

SST

Sum of Squares Total, a measure used in statistical analysis to quantify the total variance in a dataset.

Randomized Block Design

A statistical experiment design for comparing treatments by randomly assigning them within defined blocks to reduce variation.

Matched Pairs Experiment

A statistical experiment design in which subjects are paired based on certain characteristics, and then alterations are made to only one member of each pair for comparing outcomes.