Jane's Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant...
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Jane's Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an ABC study. The intern, in consultation with the owner, identified three major activities. The intern then completed the first-stage allocations of costs to the activity cost pools, using data from last month's operations. The results appear below: Activity Cost Pool Serving a party of diners. Serving a diner Serving a drink. Activity Measure. Number of parties served Number of diners served Number of drinks ordered The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top- management salaries. A group of diners who ask to sit at the same table are counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served. Activity Cost Pool Total Cost $ 14,560 $ 99,540 $ 31, 200 Prior to the ABC study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $201,600 and that 12,600 diners had been served. Therefore, the average cost per diner was $16. Serving parties Serving diners Serving drinks Total Total Activity 5,200 parties 12,600 diners 10,400 drinks Required: 1. According to the ABC system, what is the total cost of serving each of the following parties of diners? a. A party of four diners that orders three drinks in total. (Round your answers to 2 decimal places.) ABC Cost b. A party of two diners that does not order any drinks. (Round your answers to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.) Activity Cost Pool Serving parties Serving diners Serving drinks Total ABC Cost c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) Activity Cost Pool ABC Cost Serving parties Serving diners Serving drinks Total 2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners that orders three drinks in total. b. A party of two diners that does not order any drinks. c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) a. b. C. per diner per diner per diner Jane's Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an ABC study. The intern, in consultation with the owner, identified three major activities. The intern then completed the first-stage allocations of costs to the activity cost pools, using data from last month's operations. The results appear below: Activity Cost Pool Serving a party of diners. Serving a diner Serving a drink. Activity Measure. Number of parties served Number of diners served Number of drinks ordered The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top- management salaries. A group of diners who ask to sit at the same table are counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served. Activity Cost Pool Total Cost $ 14,560 $ 99,540 $ 31, 200 Prior to the ABC study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $201,600 and that 12,600 diners had been served. Therefore, the average cost per diner was $16. Serving parties Serving diners Serving drinks Total Total Activity 5,200 parties 12,600 diners 10,400 drinks Required: 1. According to the ABC system, what is the total cost of serving each of the following parties of diners? a. A party of four diners that orders three drinks in total. (Round your answers to 2 decimal places.) ABC Cost b. A party of two diners that does not order any drinks. (Round your answers to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.) Activity Cost Pool Serving parties Serving diners Serving drinks Total ABC Cost c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) Activity Cost Pool ABC Cost Serving parties Serving diners Serving drinks Total 2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners that orders three drinks in total. b. A party of two diners that does not order any drinks. c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) a. b. C. per diner per diner per diner
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Related Book For
The Legal Environment of Business
ISBN: 978-0538473996
11th Edition
Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards
Posted Date:
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