find out solutions Questions:85Thoen Nuptial Bakery makes very elaborate wedding cakes to order.The company has an activity-based costing system with three activitycost pools. The activity rate for the Size-Related activity cost pool is$0.96 per guest. (The greater the number of guests, the larger the cake.)The activity rate for the Complexity-Related cost pool is $54.24 per tier.(Cakes with more tiers are more complex.) Finally, the activity rate forthe Order-Related activity cost pool is $56.44 per order. (Each weddinginvolves one order for a cake.) The activity rates include the costs ofraw ingredients such as flour, sugar, eggs, and shortening. The activityrates do not include the costs of purchased decorations such asminiature statues and wedding bells, which are accounted forseparately.Data concerning two recent orders appear below:Number of reception guestsNumber of tiers on cakeCost of purchased decorations forNie Wedding Strobl Wedding6712935$ 23.50$ 31.31Assuming that the company charges $584.18 for the4 Strobl weddingcake, what would be the overall margin on the order?a. $157.83b. $101.39c. $132.70d. $483.79

Detailed SolutionTo calculate the overall margin for the Strobl wedding cake, we need to:Determine…

Answered: Questions:85 Thoen Nuptial Bakery makes…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter20: Activity-based Costing (abc)

Section: Chapter Questions

Problem 1R: Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following...

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Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pool Activity Rate Size-related................... $1.13 per guest Complexity-related......... $28.22 per tier Order-related................. $74.72 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) 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,…
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