Cost classification Poker's is a small hamburger shop catering mainly to students at a nearby university, it is open for business from 11 a.m. until 11 p.m., Monday through Friday. The owner, Chip Poker, employs two cooks, one server, and a part-time janitor. Because there is no space for dining inside the shop, all orders are take-out orders.

Poker's sold 10,000 hamburgers last month. The average hamburger requires 1 hamburger bun, 8 ounces of meat, 4 ounces of cheese, one-eighth a head of lettuce, and $0.07 worth of other ingredients. Costs incurred during the last month include the following:

REQUIRED

(a) Classify these costs into one of the following categories: direct materials, di¬ rect labor, indirect manufacturing (support), selling support, and administra¬ tive support. What is the total cost for each category?

(b) Classify the costs as unit-related, batch-related, product-sustaining, or busi¬ ness-sustaining costs. What is the total cost for each category?

(c) Suppose that Poker's capacity is 10,000 hamburgers per month with his labor force. If Poker sells only 9000 hamburgers this month, what indirect manufacturing cost per hamburger should Poker assign?(LO 1, 3)

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Meat Cheese $5000 1000 Bread 800 Lettuce 600 Other ingredients 700 Cooks' wages 5000 Servers' wages 1500 Janitor's wages 600 Utilities 500 Depreciation on equipment 300 Paper supplies (napkins and bags) Rent Advertisement in local newspaper 200 600 300