Trumball Catering served 4,200 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities Depreciation on trucks and equipment (straight- line, unit basis) Fixed costs: Managers' salaries Rent Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs $ 10,400 22,900 9,700 3,860 Total variable costs Total fixed costs Total costs Unit costs 7,000 $ 29,700 15, 200 8,600 3,900 Check my work Required: Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The controller at Trumball knows that if the business caters over 4,620 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,307 for the month. Miscellaneous fixed costs are expected to increase by 15 percent. Calculate the unit cost and the total cost if expectations for costs and volume are met next month. Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Trumball Catering served 4,200 meals last month. Trumball recorded the following costs with those meals:
Variable costs:
Ingredients used
Direct labor
Indirect materials and supplies
Utilities
Depreciation on trucks and equipment (straight-
line, unit basis)
Fixed costs:
Managers' salaries
Rent
Depreciation on equipment (straight-line, time
basis)
Miscellaneous fixed costs
Total variable costs
Total fixed costs
Total costs
Unit costs
$ 10,400
22,900
9,700
3,860
P
7,000
$ 29,700
15, 200
8,600
3,900
Required:
Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The
controller at Trumball knows that if the business caters over 4,620 meals in a month, the company must hire an additional manager
(part-time) at a cost of $3,307 for the month. Miscellaneous fixed costs are expected to increase by 15 percent.
Calculate the unit cost and the total cost if expectations for costs and volume are met next month.
Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places.
Check my work
Transcribed Image Text:Trumball Catering served 4,200 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities Depreciation on trucks and equipment (straight- line, unit basis) Fixed costs: Managers' salaries Rent Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs Total variable costs Total fixed costs Total costs Unit costs $ 10,400 22,900 9,700 3,860 P 7,000 $ 29,700 15, 200 8,600 3,900 Required: Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The controller at Trumball knows that if the business caters over 4,620 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,307 for the month. Miscellaneous fixed costs are expected to increase by 15 percent. Calculate the unit cost and the total cost if expectations for costs and volume are met next month. Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places. Check my work
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