Datd concerning two rec C ezto.mheducation.com/hm.tpx connect. Managerial Accoun

Question

Datd concerning two rec C ezto.mheducation.com/hm.tpx connect. Managerial Accounting-F 80679 ACCOUNTING ter Quiz 3 Question 20 (of 40) O. makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Related cost pool is $28.31 per tier. (Cakes Size-Related activity cost pool is $0.76 The greater the number of guests, the larger the cake.) The activity rate for the Complexity with more tiers are more complex.) Finally, the activity rate for the involves one order for a cake.) The rates Include the costs of raw Ingredients such as flout, sugar, eggs and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are Order-Relsted actvity cost pool is $78.98 per order. (Each wedding i accounted for separately Data concerning two recent orders appear below: Weddi Number of tiers on the Assuming that the company charges $673.31 for the Sparacio wedding cake, whet would be the overal margin on the order? O s112.56 O $106.23 O $638.94 o $3437

Explanation / Answer

Revenue 673.31 Costs: Purchased decorations 167.2 =220*0.76 Size related activity 311.41 =11*28.31 Complexity related activity 81.35 Order ralated activity 78.98 Overall margin 34.37 Option 4 is correct

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