HWR Inn is a fast-food restaurant that sells burgers and hot dogs in a 1980s environment....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
HWR Inn is a fast-food restaurant that sells burgers and hot dogs in a 1980s environment. The fixed operating costs of the company are $10,000 per month. The controlling shareholder, interested in product profitability and pricing, wants all costs allocated to either the burgers or the hot dogs. The following information is provided for the operations of the company: Burgers 5,000 Sales for January Sales for February 10,000 Hot Dogs 3,000 3,000 a. What amount of fixed operating costs is assigned to the burgers and hot dogs when actual sales are used as the allocation base for January? For February? (12 points) b. Hot dog sales for January and February remained constant. Did the amount of fixed operating costs allocated to hot dogs also remain constant for January and February? Explain why or why not. Comment on any other observations. (13 points) HWR Inn is a fast-food restaurant that sells burgers and hot dogs in a 1980s environment. The fixed operating costs of the company are $10,000 per month. The controlling shareholder, interested in product profitability and pricing, wants all costs allocated to either the burgers or the hot dogs. The following information is provided for the operations of the company: Burgers 5,000 Sales for January Sales for February 10,000 Hot Dogs 3,000 3,000 a. What amount of fixed operating costs is assigned to the burgers and hot dogs when actual sales are used as the allocation base for January? For February? (12 points) b. Hot dog sales for January and February remained constant. Did the amount of fixed operating costs allocated to hot dogs also remain constant for January and February? Explain why or why not. Comment on any other observations. (13 points)
Expert Answer:
Answer rating: 100% (QA)
a To allocate fixed operating costs to burgers and hot dogs we can use the actual sales as the alloc... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
Posted Date:
Students also viewed these accounting questions
-
Company name, C's Tasty wings a fast food restaurant selling wings, chicken etc, and Vantage points of C's Tasty wings: 1. Offer baked, fried, and smoked wings. 2. Offer all you can eat wing buffet...
-
A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of server time per unit of machinery time....
-
A fast food restaurant estimates that the mean sodium content in one of its breakfast sandwiches is no more than 920 milligrams. A random sample of 44 breakfast sandwiches has a mean sodium content...
-
Find the mass and center of mass of the lamina that occupies the region D and has the given density function p. D is the triangular region with vertices (0, 0), (2, 1), (0, 3); (x, y) = x + y
-
Draw the network representation of the following network flow problem. MIN: +7X12 + 6X14 + 3X23 + 4X24 + 5X32 + 9X43 + 8X52 + 5X54 Subject to: - X12 - X14= -5 +X12 + X52 + X32 - X23 - X24 = +4 - X32...
-
Two regular six-sided dice are tossed. Compute the probability that the sum of the pips on the upward faces of the two dice is the following. At most 4
-
Visit the website of one of the online marketing research firms (e.g., Toluna at us.toluna .com/default.aspx or www.toluna.com). Locate a survey administered currently at this site. Critically...
-
Four years ago Omega Technology, Inc., acquired a machine to use in its computer chip manufacturing operations at a cost of $35,000,000. The firm expected the machine to have a seven-year useful life...
-
Verify Cayley Hamilton theorem for the given matrix B and hence find B-1 and B4. B = 13 -3 5 0 4 0 -15 9 -7
-
Tuckered Outfitters plans to market a custom brand of packaged trail mix. The ingredients for the trail mix will include Raisins, Grain, Chocolate Chips, Peanuts, and Almonds costing, respectively,...
-
Describe the elements that need to be considered when designing and constructing a factory.
-
Standing on the edge of a rotating playground carousel, you take sight on the center of the carousel and walk directly toward that position. (a) What happens to the rotational speed of the carousel...
-
Why do quarterbacks throw the football with significant spin about its long axis?
-
A solid \(50-\mathrm{kg}\) cylinder has a radius of \(0.10 \mathrm{~m}\). What \(\mathrm{min}-\) imum work is required to get the cylinder rolling without slipping at a rotational speed of \(20...
-
Imagine that an asteroid \(1 \mathrm{~km}\) in diameter collides with Earth. Estimate the maximum fractional change in the length of the day due to this collision.
-
Is the distribution of those digits a normal distribution? Why or why not?
-
Solve the following 1. Prepaid Insurance Notes Receivable Accounts Payable Uncollectible Accounts Delivery Equipment Unused Supplies Cash in Bank Salaries Payable Accrued Interest Income Accounts...
-
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...
-
Refer to the data for Bens Corporation in Exercise 11-35. Required Use the step method to allocate the service department costs to the production departments. Allocate HR costs first, followed by IT,...
-
What are three practical implementation problems when using regression analysis to estimate costs?
-
Refer to the data in Exercise 14-31. Required Evaluate the performance of the two divisions assuming UEI uses residual income. Exercise 14-31 Consumer Commercial Sales revenue $22,000 $37,000...
-
An \(80 \mathrm{~kg}\) man standing on a frozen lake tosses a 0. 500 \(\mathrm{kg}\) football to his dog. (a) If the ball leaves his hands at \(15 \mathrm{~m} / \mathrm{s}\) relative to Earth, what...
-
A small block of wood of inertia \(m_{\text {block }}\) is released from rest a distance \(b\) above the ground, directly above your head. You decide to shoot it with your pellet gun, which fires a...
-
Draw before and after energy bars for the collision shown in Figure \(6.8 a\) and \(6.8 b\). Data from Figure 6.8 (a) Earth reference frame (b) Reference frame M (DEM == 0.20 m/s) = 0 FM2 ME NIZ E...
Study smarter with the SolutionInn App