Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing systern with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.25 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $37.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $78.95 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: Number of reception guests Ericson Wedding Haupt Wedding 73 199 9 9 Number of tiers on the cake Cost of purchased decorations for cake $ 18.90 $ 81.35 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the ompany have to charge for the Ericson wedding cake to just break even? Multiple Choice $523.99 $18.90 $575.58 Activate Wir

Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing systern with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.25 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $37.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $78.95 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: Number of reception guests Ericson Wedding Haupt Wedding 73 199 9 9 Number of tiers on the cake Cost of purchased decorations for cake $ 18.90 $ 81.35 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the ompany have to charge for the Ericson wedding cake to just break even? Multiple Choice $523.99 $18.90 $575.58 Activate Wir

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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