A restaurant has the following 12 month record of sales revenue of sales and wages costs. Sales
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Question:
A restaurant has the following 12 month record of sales revenue of sales and wages costs.
Sales Revenue Wages Costs
January | $24, 500 | $11,300 |
February | 24,200 | 11,100 |
March | 25,600 | 11,200 |
April | 24,200 | 11,400 |
May | 34,000 | 13, 200 |
June | 46,200 | 18,600 |
July | 53,300 | 21,600 |
August | 44,000 | 16,100 |
September | 34,200 | 15,100 |
October | 30,400 | 12,800 |
November | 28,200 | 11,200 |
December | 27,000 | 13,000 |
Adjustment to the base information shown: Included in the July wages is a lump-sum retroactive wage increase of $1,800, which would not normally be part of the july wage cost. Also, in December, the restaurant catered a special Christmas function that brought in $3,400 in wages. The December wages figure also included $1,400 in Christmas bonuses to the staff. Use high-low method to calculate the restaurant's monthly fixed costs.
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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