Question

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costin the costs of her catered parties. Each party is limited to 20 guests and i people to serve and clean up. Cathy offers two types of parties-an afte and an evening formal dinner. The breakdown of the costs follows.

Answer 1

Add: planning & 66 x 1 party) 2 Answer: a) Determine the cost of a lo quest afternoon picnic. particulars Amount Advertising ($x party ) . $111 $ 66 Add: Reutid * I paig) ar Renting euipment $317 591 party) +413x20 guests) Add Oblaining insurance $170 xi party) Addi Servicing $528 4 Servers) $170 Addr preparing toods ($25x20 guests) $500 cost of an afternoon picnic $1,372 . The cost of a go-guest afternoon picnic is $1,372 b) Determine the cost of a 20-guest evening formal dinner. particulars amount Advertising (4111 x 1 party) $111 Add planning ( 148 x , party) $148 Add: renting equipment a Add: obtaining C$ 70x i pasly) +66 21xgogues $490 Add Oblaining Insurance (390x i part) $390 Add- ser 9 $ 76 x 4 sexvers) $304 Add: preparing foods 433* 20 guests, $ 660 Cost of an evening formal dinner $2,103 : The cast of a so-guest evening formal dinner is $2,103 c) Determine the cost for each guest for each type of party D Afterucon pienich cost for each guest in Afternoon picnic = Total cost man afterucou picue parly/wcember of quest's =$1,372/20 ansit per pasty ..Cost for each guest in Aflerucon pienie = $68.6 2) Evening formal dinner :- Cast for each quest in evening formal dinner = Total cost of an evening formal dinner/Number of guests u =$3103/20 guest's Prants .. cost for each guest in evening formal diuuer = $105.15 : The cost for each guest in afternoon picuie parly is $68.6 and in evening formal dinner is $105.15. perdinnen