Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.13 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $43.52 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $61.44 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately.Data concerning
two recent orders appear below: Ericson WeddingHaupt WeddingNumber of reception guests 60 162Number of tiers on the cake 4 3Cost of purchased decorations for cake$16.89$38.61Assuming that the company charges $500.54 for the Haupt wedding cake, what would be the overall margin on the order?
A. $413.67
B. $148.31
C. $125.48
D. $86.87
Answer: D
You might also like to view...
What is the term for the motion when counsel requests the court to rule that all or a part of the claim should be dismissed because no genuine issue of a material fact is present?
a. motion for summary judgment b. motion for settlement c. motion for trial and appeal d. motion for evidence suppression
In the financial market context, _____ is the chance that a financial asset will not earn the return promised.
A. maturity B. production opportunity C. time preference for consumption D. risk E. inflation
In CCPM, a finite amount of time that can be added to a sequence of activities to non-critical tasks best describes
A) negative float. B) safety float. C) relaxed capacity. D) feeding buffers.
Restitution involves one party's recapture of a benefit conferred on the other party that has unjustly enriched him or her
Indicate whether the statement is true or false