Question

Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company...

Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system:

Activity Cost Pools Activity Rate
Size-related $ 1.24 per guest
Complexity-related $ 28.58 per tier
Order-related $ 75.08 per order

The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately.

Data concerning two recent orders appear below:

Tijerina Wedding Twersky Wedding
Number of reception guests 49 137
Number of tiers on the cake 2 4
Cost of purchased decorations for cake $ 30.10 $ 55.00

Assuming that the company charges $559.17 for the Twersky wedding cake, what would be the overall margin on the order?

Multiple Choice

  • $414.28

  • $219.97

  • $199.89

  • $144.89

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company...
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $ 1.29 per guest Complexity-related $ 28.38 per tier Order-related $ 74.88 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake....
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company...
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $ 1.20 per guest Complexity-related $ 28.54 per tier Order-related $ 75.04 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake....
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company...
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $ 1.19 per guest Complexity-related $ 28.28 per tier Order-related $ 74.78 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake....
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing...
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $0.78 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $24.69 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $85.21 per order. (Each wedding...
Bevard Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing...
Bevard Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.15 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $28.75 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $80.45 per order. (Each wedding...
please answer..highlight answer Thoen Nuptial Bakery makes very elaborate wedding cakes to order. The company has...
please answer..highlight answer Thoen Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $0.99 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $58.55 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $60.75 per...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours $ 17.70 per direct labor-hour Customer orders Number of customer orders $ 357.00 per customer...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries $ 300,000 Other overhead costs 100,000 Total overhead costs $ 400,000 Activity Cost Pool Activity Measure Total Activity for the Year Supporting direct labor Number of direct labor-hours 20,000 DLHs Order processing Number of customer orders 400 orders Customer support Number of customers 200 customers Other This is an organization- sustaining activity Not applicable Distribution of Resource Consumption Across Activities Supporting Direct...
For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago,...
For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.80 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.40 hours of direct labor...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries $ 900,000 Other overhead costs 800,000 Total overhead costs $ 1,700,000       Activity Cost Pool Activity Measure Total Activity Direct labor support Number of direct labor-hours 10,000 DLHs Order processing Number of customer orders 500 orders Customer support Number of customers 100 customers Other This is an organization-sustaining activity Not applicable Distribution of Resource Consumption Across Activities Direct Labor Support Order...