Sophias Restaurant served 5,000 meals last quarter. Sophia recorded the following costs with those meals. Variable costs:
Question:
Sophia’s Restaurant served 5,000 meals last quarter. Sophia recorded the following costs with those meals.
Variable costs:
Ingredients used .....................................$14,000
Direct labor ................................................10,500
Indirect materials and supplies ................5,300
Utilities .........................................................1,700
Fixed costs:
Managers’ salaries ........................................................22,000
Rent .................................................................................18,000
Depreciation on equipment (straight-line, time basis) 2,000
Other fixed costs ..............................................................3,000
Required
Unit variable costs and total fixed costs are expected to remain unchanged next quarter. Calculate the unit cost and the total cost if 4,500 meals are served next quarter.
Step by Step Answer:
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher