Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in...
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Wember 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 $850 per month plus $83 per job plus $16 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 September to be 24 jobs and 143 meals, but the actual activity was 20 jobs and 140 meals. The actual cost for catering supplies in September was $4,550. The catering supplies in the planning budget for September would be closest to:
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