Question

waterford company maintains a cafeteria for its employees. for june, variable food costs were budgeted at $45 per employee based on a budgeted level of 200 employees in other departments. during the month, an average of 190 employees worked in other departments and actual food costs totaled $9,250. how much food cost should be charged to the other departments at the end of the month for performance evaluation purposes

Answer 1

Answer:

$8,550

Explanation:

Calculation for how much food cost should be charged to the other departments at the end of the month for performance evaluation purposes

Using this formula

Other departments Cost to be charged=Average other departments *Budgeted variable food costs

Let plug in the formula

Other departments Cost to be charged =190 employees x$45 per employee

Other departments Cost to be charged= $8,550

Therefore how much food cost should be charged to the other departments at the end of the month for performance evaluation purposes is $8,550