A restaurant has the following 12-month record of sales revenue and wage costs: Adjustments to the base
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A restaurant has the following 12-month record of sales revenue and wage costs:
Adjustments 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 sales revenue, and cost the restaurant an additional $900 in wages. The December wage figure also included $1,400 in Christmas bonuses to the staff.
Use the high–low method to calculate the restaurant’s monthly fixed wage costs.LO1
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Related Book For
Hospitality Management Accounting
ISBN: 9780471687894
9th Edition
Authors: Martin G Jagels, Catherine E Ralston
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