Question 1.11 The Paris Company provides catering services. The cost of catering

Question

Question 1.11 The Paris Company provides catering services. The cost of catering supplies is $300 per month plus $100 per job catered plus $25 per meal served. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company budget for May was 27 jobs to be catered and 160 meals to be served. The actual activity for May was 26 jobs catered and 192 meals served, and the actual cost of catering supplies was $7,620. The cost of catering supplies in Paris' planning budget for the month of May was: 4 points O $6,700 O $7,700 O $7,400 O $7,000 Question 1.12 4 points The Paris Company provides catering services. The cost of catering supplies is $300 per month plus $100 per job catered plus $25 per meal served. A typical job involves serving a number of meals to guests at a corporate function or at a hosts home. The company budget for May was 27 jobs to be catered and 160 meals to be served. The actual activity for May was 26 jobs catered and 192 meals served, and the actual cost of catering supplies was $7,620. The cost of catering supplies in Paris' flexible budget for the month of May was: O $7,400 O $7,000 $6,700 O $7,700

Explanation / Answer

1 Cost of catering supplies in planning budget=300+(27*100)+(25*160)= 7000 2 Cost of catering supplies in flexible budget=300+(26*100)+(25*192)= 7700 3 Activity variance = 7700-7000 = 700 Unfavorable 4 Spending variance = 7620-7700 = 80 Favorable

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.