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Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Required A Afternoon Picnic $97 per party $ 64 per party $ 40 per party plus $11 per guest $165 per party $ 51 per server per party $ 23 per guest Complete this question by entering your answers in the tabs below. Required B Required C Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Compute the cost of a 20-guest afternoon picnic. Afternoon picnic Formal Dinner $ 97 per party $102 per party $ 67 per party plus $25 per guest. $370 per party $ 70 per server per party $ 28 per guest
Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Required A Complete this question by entering your answers in the tabs below. Required B Afternoon Picnic $ 97 per party $64 per party $40 per party plus $11 per guest. $165 per party $ 51 per server per party $ 23 per guest Required C Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Compute the cost of a 20-guest evening formal dinner. Evening formal dinner Formal Dinner $ 97 per party $102 per party $ 67 per party plus $25 per guest $370 per party $ 70 per server per party $28 per guest
Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Complete this question by entering your answers in the tabs below. Required A Required B Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Afternoon Picnic party $64 per party $ 97 per $40 per party plus $11 per guest $165 per party $ 51 per server per party $ 23 per guest Required C Afternoon picnic Formal dinner Formal Dinner Charging Amount per guest per guest $ 97 per party $102 per party. $ 67 per party plus $25 per guest $370 per party $70 per server per party. $28 per guest How much should Cathy charge for each guest for each type of party if she wants to cover her costs? (Round your answers to decimal places.)