Question

The cafeteria at X Company incurred the following costs in September: Cost Item Cost Supervisor salary $5,920 Hourly workers wages 32,088 Food 11,074 Equipment 6,810 Supplies 3,118 Total $59,010 The hourly workers wages, food costs, and supplies costs were variable; the supervisor salary and equipment costs were fixed. The cafeteria served 13,000 meals during September. In October, the cafeteria is expected to serve 12,350 meals. Using account analysis with this data, estimate the total cafeteria cost in October [round variable costs per unit to two decimal places]?

Answer 1

Particulars	Amount in $
Variable Cost Calculation
Hourly workers wages	32,088
Food Cost	11,074
Supplies	3,118
Total Variable Cost (A)	46,280
Meals served in September	13,000
Variable cost per meal served	4
Meals served in October	12,350
Total Variable Cost in October (A)	43,966
Fixed Cost Calculation
Equipment	6,810
Supervisor Salary	5,920
Total Fixed Cost (B)	12,730
Total Cost (A+B)	56,696