Question

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 $450 per month plus $75 per job plus $10 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 27 jobs and 146 meals, but the actual activity was 23 jobs and 143 meals. The actual cost for catering supplies in September was $3,435. The catering supplies in the planning budget for September would be closest to:

Answer 1

Answer:

$3,935

Explanation:

The computation of the catering supplies are shown below:

= Catering supplies + monthly cost for each job × number of jobs + monthly cost for per meal × number of meals

= $450 + $75 × 27 jobs + $10 × 146 meals

= $450 + $2,025 + $1,460

= $3,935

We simply added the catering supplies cost, meal cost, and the job cost so that the accurate value can come

All other information which is given is not relevant. Hence, ignored it