Trumball Catering served 4,000 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities. Truck fuel and other variable costs Fixed costs: Managers' salaries Rent Depreciation on trucks and equipment (straight-line, time basis) Miscellaneous fixed costs Total variable costs Total fixed costs $ 10,200 22,500 9,300 3,600 6,200 Total costs Unit costs $ 28,700 14,200 Required: Unit variable costs and total fixed costs are expected to remain unchanged next quarter. Calculate the unit cost and the tot 4,800 meals are served next quarter. Note: Round "Unit costs" answer to 2 decimal places. 7,600 3,500
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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