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The cafeteria department at X Company incurred the following costs for September:

Cost Item Cost  
Supervisor's salary $5,950
Hourly workers' wages 26,600
Food 11,400
Equipment 7,630
Supplies 3,100
Total $54,680

The hourly workers' wages, food costs, and supplies costs are completely variable; the other costs are completely fixed. The cafeteria served 11,400 meals during September. In October, the cafeteria is expected to serve 11,500 meals. Using the data from September and account analysis, what is the estimated total cost for the cafeteria department for October (round variable costs per unit to three decimal places and your final answer to the nearest dollar)?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9966034

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