C Get Homework Help With Chegg X Assignment-4.pdf X + C File C:/Users/hp/Downloads/Assignment-4.pdf Assignment-4.pdf 1 / 2 100% + Management Accounting Assignment-4 (Due 11:59 pm on march 24) You have the following annual information about Moonlight Bar and Grill, which consists of three different operating segments. Moonlight Bar and grill Income statement For the Year ended December 31, 2020 dining room Bar Area outdoor Patio total Sales Revenue $206,900 $156,800 $186,000 $549,700 Direct Costs 164,000 145,000 152,000 461,000 Contribution Income $42.900 $11.800 $34.000 88,700 Indirect Costs 63,000 Operating Income $25,700 The owner wants to allocate indirect costs to each area based on square footage, to analyze how each segment of the restaurant is performing. The dining room is 3,300 square feet, the bar area is 1,500 square feet and the outdoor patio is 1,200 square feet. 2 required a) Allocate the indirect costs as indicated. Moonlight Bar and grill Income statement For the Year ended December 31, 2020 dining room Bar Area outdoor Patio total Sales Revenue Direct Costs Contribution Income Indirect Costs Onerating Income H Type here to search ir a ENG IN 1:05 AM 3/18/2021 710 C Get Homework Help With Chegg X Assignment-4.pdf X + C File C:/Users/hp/Downloads/Assignment-4.pdf Assignment-4.pdf 1 / 2 100% + For the Year ended December 31, 2020 dining room Bar Area outdoor Patio total Sales Revenue Direct Costs Contribution Income Indirect Costs Operating Income b) The owner of the restaurant has an offer from a smoothie shop to rent the bar area for $7,000 per year. Rent does not include any of the indirect costs; they will have to be absorbed by the other segments. Prepare a revised income statement and advise the owner if this if an acceptable offer or not. Moonlight Bar and grill Income statement For the Year ended December 31, 2020 Sales Revenue Direct Costs Contribution Income Indirect Costs Income before Rent Rental Income Operating Income 2 H Type here to search o a ENG IN 1:05 AM 3/18/2021 C Get Homework Help With Chegg X Assignment-4.pdf X + C File C:/Users/hp/Downloads/Assignment-4.pdf Assignment-4.pdf 2 / 2 100% + c) The restaurant owner took another look at the various indirect costs and, on further analysis, discovered that some indirect costs would change, as shown below. Administrative Expense Advertising Expense Insurance Expense Repairs Expense Utilities Expense total Current Indirect Costs $32,000 12,000 6,000 3,000 10,000 $63,000 Costs if Bar Area rented $29,000 8,000 4,200 2,300 7,500 $51,000 1 If the bar area is not operated, it is estimated that outdoor patio sales revenue will decrease by 30% and direct costs will decrease by $20,000. Dining room sales revenue and direct costs will not be impacted. Prepare a revised income statement. With this new information, should the owner accept the offer? 2 total Moonlight Bar and grill Income statement For the Year ended December 31, 2020 dining room outdoor Patio Sales Revenue Direct Costs Contribution Income Indirect Costs Income before Rent Rental Income Operating Income c H Type here to search o ir g ENG IN 1:05 AM 3/18/2021