Cathy the manager of cathys catering inc uses

Assignment Help Taxation

Reference no: EM13370887

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to evaluate the costs of her catered parties. Each party is limited to 20 guests and needs 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 given:

Activities (and cost drivers) Afternoon Picnic Formal Dinner
Advertising (parties) $ 89 per party $ 89 per party
Planning (parties) $ 64 per party $ 146 per party
Renting equipment $ 47 per party plus $ 70 per party plus
(parties, guests) $ 14 per guest $ 20 per guest
Obtaining insurance (parties) $ 240 per party $ 360 per party
Serving (parties, servers) $ 57 per server per party $ 76 per server per party
Preparing food (guests) $ 16 per guest $ 32 per guest

Per party costs do not vary with the number of guests.

Required:
(a) Evaluate the cost of a 20-guest afternoon picnic.

Afternoon picnic $

(b) Evaluate the cost of a 20-guest evening formal dinner.

Evening formal dinner $

(c) How much should Cathy charge for every guest for each type of party if she needs to cover her costs?

Reference no: EM13370887

Questions Cloud

A identify the steps in evaluating the taxable income of a : a. identify the steps in evaluating the taxable income of a trust or estate.b. show the uses and implication of

Biando corporation began operations on 1st may 2010 and : biando corporation began operations on 1st may 2010 and completed the subsequent transactions during its first month of

Last night as you scrolled through the tv channels to : last night as you scrolled through the tv channels to evaluate an action flick you came across an old movie with tough

The operating cost for a proposed waste-water treatment : the operating cost for a proposed waste-water treatment plant is evaluated as 500000 per year increasing by 100000 each

Cathy the manager of cathys catering inc uses : cathy the manager of cathys catering inc. uses activity-based costing to evaluate the costs of her catered parties.

In 2012 muhammad purchased a latest computer for 16000 the : in 2012 muhammad purchased a latest computer for 16000. the computer is used 100 percent for business. muhammad did not

Intermediate scenario 1 kathy greenlee interview notes bull : intermediate scenario 1 kathy greenlee interview notes bull kathy is a 53-year-old elementary school teacher. bull

Collier borrowed 350000 on 1st october and is required to : collier borrowed 350000 on 1st october and is required to pay 360000 on 1st march. what amount is the note payable

Vintage cellars manufactures a 1000-bottle wine cargo space : vintage cellars manufactures a 1000-bottle wine cargo space system that maintains optimum temperature 55-57 degf and

User Account

All Pages