How much variable food cost should be charged


Oak Cabinets Company maintains a cafeteria for its employees. For June, total variable food costs were budgeted at $48 per employee, based on a budgeted level of 1,000 employees in operating departments. During the month, an average of 1,100 employees worked in operating departments. The cafeteria's actual total variable food costs for the month came to $57,750. How much variable food cost should be charged to the operating departments at the end of the month for performance evaluation purposes?

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Accounting Basics: How much variable food cost should be charged
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