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Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Required A Afternoon Picnic $ 111 per party $ 86 per party $ 58 per party plus $11 per guest $170 per party Complete this question by entering your answers in the tabs below. $ 43 per server per party $ 18 per guest Required B Required C Afternoon picnic Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Compute the cost of a 20-guest afternoon picnic. < Required A Formal Dinner Required B > $111 per party $106 per party $ 80 per party plus $24 per guest $355 per party $ 69 per server per party $26 per guest

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Required A Afternoon Picnic $ 111 per party $ 86 per party $ 58 per party plus $11 per guest $170 per party Complete this question by entering your answers in the tabs below. $ 43 per server per party $ 18 per guest Required B Required C Afternoon picnic Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Compute the cost of a 20-guest afternoon picnic. < Required A Formal Dinner Required B > $111 per party $106 per party $ 80 per party plus $24 per guest $355 per party $ 69 per server per party $26 per guest

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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Complete this question by entering your answers in the tabs below. Required A Required B Required C How much should Cathy charge for each guest for each type of party if she wants to cover her costs? (Round your answers to 2 decimal places.) Afternoon picnic Formal dinner Charging Amount per guest per guest < Required B Required C
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Required C How much should Cathy charge for each guest for each type of party if she wants to cover her costs? (Round your answers to 2 decimal places.) Afternoon picnic Formal dinner Charging Amount per guest per guest < Required B Required C
Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Afternoon Picnic party $ 111 per party $ 86 per $ 58 per party plus $11 per guest $170 per party $43 per server per party $ 18 per guest Complete this question by entering your answers in the tabs below. Required A Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Required B Required C Compute the cost of a 20-guest afternoon picnic. Afternoon picnic < Required A Formal Dinner Required B > $111 per party $106 per party $80 per party plus $24 per guest $355 per party $ 69 per server per party $26 per guest
Transcribed Image Text:Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Afternoon Picnic party $ 111 per party $ 86 per $ 58 per party plus $11 per guest $170 per party $43 per server per party $ 18 per guest Complete this question by entering your answers in the tabs below. Required A Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Required B Required C Compute the cost of a 20-guest afternoon picnic. Afternoon picnic < Required A Formal Dinner Required B > $111 per party $106 per party $80 per party plus $24 per guest $355 per party $ 69 per server per party $26 per guest
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