Trumball Catering served 5,300 meals last month. Trumball recorded the following costs with those meals:...

50.1K

Verified Solution

Question

Accounting

Trumball Catering served 5,300 meals last month. Trumball recorded the following costs with those meals:
\table[[Variable costs:,],[Ingredients used,11,500],[Direct labor,25,100],[Indirect materials and supplies,11,900],[Utilities,5,290],[Depreciation on trucks and equipment,11,400],[,(straight-line, unit basis),],[Fixed costs:,35,200],[Managers' salaries,20,700],[Rent,14,100],[Depreciation on equipment (straight-line, time,6,100],[basis),]]
Required:
Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The controller at Trumball knows that if the business caters over 5,830 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,920 for the month. Miscellaneous fixed costs are expected to increase by 15 percent.
Calculate the unit cost and the total cost if expectations for costs and volume are met next month.
Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places.
\table[[Total variable costs],[Total fixed costs],[Total costs],[Unit costs]]
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students