Stuchlik Catering uses two measures of activity, jobs and meals, in the cost for

Question

Stuchlik Catering uses two measures of activity, jobs and meals, in the cost formulas in its flexible budgets. The cost formula for catering supplies is $440 per month plus $56 per job plus $16 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 21 jobs and 185 meals, but the actual activity was 22 jobs and 188 meals. The actual cost for catering supplies in January was $4,700. The catering supplies in the planning budget for January would be closest to: a. $4,576 b. $4,632 c. $4,700 d. $4,680

Explanation / Answer

b. $4,632

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