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28 October, 08:19

Waterford Company maintains a cafeteria for its employees. For June, variable food costs were budgeted at $64 per employee based on a budgeted level of 390 employees in other departments. During the month, an average of 380 employees worked in other departments and actual food costs totaled $11,150. How much food cost should be charged to the other departments at the end of the month for performance evaluation purposes?

A. $24,960.

B. $11,150.

C. $24,320.

D. $11,443.

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  1. 28 October, 08:35
    0
    variable food cost allocated to other department is $24320

    So option (c) will be the correct answer

    Explanation:

    We have given variable food cost were budgeted at $64 per employee

    Average of employee = 380

    We have to find the food cost allocated to the other department

    Variable food cost allocated to the other department = 380*$24 = $24320

    So variable food cost allocated to other department is $24320

    So option (c) will be the correct answer
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