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Unformatted text preview: 1. Naval Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $430 per month plus $99 per job plus $10 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 March to be 12 jobs and 126 meals, but the actual activity was 9 jobs and 124 meals. The actual cost for catering supplies in March was $2,550. The catering supplies in the planning budget for March would be closest to: Answer: 2. Lapinsky Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $31,400 per month plus $2,148 per flight plus $7 per passenger. The company expected its activity in April to be 89 flights and 261 passengers, but the actual activity was 84 flights and 260 passengers. The actual cost for plane operating passengers, but the actual activity was 84 flights and 260 passengers....
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This note was uploaded on 10/17/2011 for the course ACCT 206 taught by Professor Dr.zachry during the Spring '11 term at Nicholls State.
- Spring '11
- Managerial Accounting