People Window Help Corne Help Seve & En Nissley Wedding Fantasy Corporation make

Question

People Window Help Corne Help Seve & En Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following dets concerning the activity rates in its activity-based costing system Size-related Complexity-related Order-related 1.10 per guest $28.44 per tier 74.94 per order The messure of activity for the size-elated activity cost pool is the number of planned guests at the wedding reception. The grester the number of guests, the larger the cake. The messure of complexity s the number of tiers in the cake. The activity measune number of orders. JEach wedding involves one ordec) The activity The activity rates do not incluade the costs of purchased decorations such as mielature s Data concerming two recent orders appear below for the order-nelated cost pool is the rates include the costs of raw Ingredients such as flour, sugar, eggs, and shortening statues and wedding bells, which are accounted for seperately jerina Tversky Wedding Wedding 130 Bumber of reception guests Sunber of tiers on the cake Cost of parchased decorations for cake 29.40 $54.86 Assuming that all of the costs listed above are avoidable costs in the event that an charge for the Tjerina wedding cake to just breaik order is turned down, what amount would the compeny heve to 8 9 3

Explanation / Answer

Answer:$415

Working notes for the above answer is as under

Twerkey

Rate

A

B

C=A*B

Guest

130

1.1

143

Tire

5

28.44

142.2

order

1

74.94

74.94

decoration

1

54.86

54.86

415

Twerkey

Rate

A

B

C=A*B

Guest

130

1.1

143

Tire

5

28.44

142.2

order

1

74.94

74.94

decoration

1

54.86

54.86

415

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