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Trumball Catering served 4,600 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities $ 10,800 23,700 10,500 4,380 Depreciation on trucks and equipment (straight- line, unit basis)) 8,600 Fixed costs: Managers salaries $31,700 Rent 17,200 Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs 10,600 4,700 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 5,060 meals in a month, the company must hire an additional manager (part-time) at a cost of $3.530 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. Answer is not complete. Total variable costs Total fixed costs $ 68,435 Total costs Unit costs

Trumball Catering served 4,600 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities $ 10,800 23,700 10,500 4,380 Depreciation on trucks and equipment (straight- line, unit basis)) 8,600 Fixed costs: Managers salaries $31,700 Rent 17,200 Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs 10,600 4,700 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 5,060 meals in a month, the company must hire an additional manager (part-time) at a cost of $3.530 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. Answer is not complete. Total variable costs Total fixed costs $ 68,435 Total costs Unit costs

FINANCIAL ACCOUNTING
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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Trumball Catering served 4,600 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities $ 10,800 23,700 10,500 4,380 Depreciation on trucks and equipment (straight- line, unit basis)) 8,600 Fixed costs: Managers salaries $31,700 Rent 17,200 Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs 10,600 4,700 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 5,060 meals in a month, the company must hire an additional manager (part-time) at a cost of $3.530 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. Answer is not complete. Total variable costs Total fixed costs $ 68,435 Total costs Unit costs
Transcribed Image Text:Trumball Catering served 4,600 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities $ 10,800 23,700 10,500 4,380 Depreciation on trucks and equipment (straight- line, unit basis)) 8,600 Fixed costs: Managers salaries $31,700 Rent 17,200 Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs 10,600 4,700 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 5,060 meals in a month, the company must hire an additional manager (part-time) at a cost of $3.530 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. Answer is not complete. Total variable costs Total fixed costs $ 68,435 Total costs Unit costs
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