Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 35 poin Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better

image text in transcribed
3 35 poin Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first stage allocations of costs to the activity cost pools. The results appear below Activity Control Activity Measure Total cost Total activity Serving a party of diners Number of parties served $ 16,820 5,000 parties Serving a diner Number of diners served $ 101,910 12.900 diners Serving drinks Number of drinks ordered 533,700 10,900 drinks 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 807) Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the activity based costing study, the owner knew very little about the costs of the restaurant She knew that the total cost i the month (including organization sustaining costs) was $180,000 and that 12,000 diners had been served. Therefore, the average cost per diner was $15 Required: 2 According to the activity based costing system, what is the total cost and average cost per diner for serving each of the following partes of diners (Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places) Total Cou Aputy of four onen werken wat Aparty of traders who do not do any drinks Aparty for diner to orders for dinis Average Cost Del diner porn Per dine

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

2nd edition

978-0078025518

Students also viewed these Accounting questions

Question

When is logistic regression used?

Answered: 1 week ago