Question: Exercise 2-53 (Algo) Cost Behavior and Forecasting (LO 2-5) Trumball Catering served 5,600 meals last month. Trumball recorded the following costs with those meals:
Exercise 2-53 (Algo) Cost Behavior and Forecasting (LO 2-5) Trumball Catering served 5,600 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 Required: $ 11,800 25,700 12,500 5,680 12,600 $ 36,700 22,200 15,600 6,700 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 6,160 meals in a month, the company must hire an additional manager (part-time) at a cost of $4,087 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. Total variable costs Total fixed costs Total costs Unit costs < Prev 2 of 5 11,792 512 X W MAY 20 Next > Check my work A zoom
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