Question

Help Seve Activity Cost Pools Site related Complexity-related Order-related Activity Rate $ 1.16 per quest $28.50 per tier $75.00 per order The measure of activity for these related activity cost pool is the number of planned guests at the wedding reception the greater the number of the larger the cake thes e com of ters in the cake. The activity measure for the order related cost pool is the number of ondersch wedding involves one ode) The activitates include the few s h o shortening. The activity rates do not include the cost of purchased decorations such as sand Wedding bells which are accorded for ver y Data concerning two recent orders appear below Tijerina Twers m w e and Number of reception guests Number of tiers on the cake cost of purchased decorations for cake Assuming that all of the costs listed above are avoidable costs in the event that order ont u n e charge for the Torin wedding cake to be even Multiple Choice O $75.00 o 52090 O $29.90 O O O

Answer 1

Answer: 213.90

Company have to charge for the Tijerina wedding cake to just break even =213.90

Working notes for the above answer is as under

	Calculation	Cost
Size Related cost allocation (A)	$1.16 per quest x 45 quests	52.2
Complexity Related cost allocated (B)	$28.50 per tier x 2 tier	57
Cost of Purchased decorations ©	[given in the question]	29.7
Oder Cost (D)	[given in the question]	75
Amount that the company can charge to be in Break Even (A+B+C+D)		213.9