Zara Catering Enterprise (ZCE) provides catering services for customers around Selangor, Malaysia. The services are categorized into two segments namely, (1) Budget package and (2) Premium package. Information on the menu for the two packages are as below:
Zara Catering Enterprise (ZCE) provides catering services for customers around Selangor, Malaysia. The services are categorized into two segments namely, (1) Budget package and (2) Premium package. Information on the menu for the two packages are as below:
Budget Package Menu Cost Premium Package Menu Cost
RM RM
|
White rice |
1.00 |
|
2 choices of rice White rice/ briyani/ nasi minyak |
2.00 |
|
Fried chicken |
3.50 |
|
2 choices of main dishes Chicken/ meet/ fish |
7.00 |
|
Vegetable |
1.00 |
|
2 choices of vegetables |
2.00 |
|
Fruit |
1.00 |
|
2 choices of fruits |
2.00 |
|
Drinks |
1.00 |
|
Beverages |
1.00 |
|
Dessert |
0.50 |
|
Desserts |
1.00 |
ZCE uses
REQUIRED:
- Calculate the total cost of the Premium Package order for a one-day wedding ceremony with invited guests of 2500.
(b) Determine the under/over applied overhead for the event in (a), realizing that the actual overhead incurred was RM800.
(c) Explain how the over/underapplied overhead should be treated to ensure accuracy of the actual cost of the event.
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