UXZ is a wedding event organiser company based in Z$-$land. The Finance Manager at UXZ would like to use activity$-$based costing principles to apply the correct overhead costs to the three wedding parties which occurred in the previous month.

The Finance Director has provided the following details from the previous month's records.

Overhead cost type:                           Total cost:                                         Cost driver:

Catering & waiting services                 $$300,000$                                        Guest headcount $\%$

Invoicing Costs $$120,000\%$ of total wedding spend

Other admin costs $$80,000\%$ of days planning time

Wedding details: Wedding $1$: Wedding $2$: Wedding $3$:

Guest head count $(\%$ of total guests$)60\%20\%20\%$

Total wedding cost $(\%$ of total spend$)45\%15\%40\%$

Planning days $(\%$ of total planning time$)55\%20\%25\%$

Direct costs of each wedding $$26,000$  $$11,000$  $$15,000$

Calculate the total cost, including overheads, for Wedding $3.$

Answer rating: 100% (QA)

Solution To calculate the total cost including overheads ... View the full answer