Answer:
The correct option is D. $7,124
Explanation:
To compute the catering supplies amount, the following items need to be considered. along with this, the computation is also shown:
= Catering supplies + Job cost + meal cost
where,
Catering supplies are $530 per month
Job cost = Per job cost × expected number of jobs
= $114 × 25 jobs
= $2,850
Meal cost = Per meal cost × expected number of meals
= $16 × 234 meals
= $3,744
Now put these values to the above formula
So, the answer would be equal to
= $530 + $2,850 + $3,744
= $7,124
The actual activity is not consider. Thus, it is ignored.
Hence, The catering supplies in the flexible budget for October would be closest to $7,124
Therefore, the correct option is D. $7,124
