Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Check my werk Jane's Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant has been trying to better understand

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Check my werk Jane's Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an ABC study. The intern, in consultation with the owner, identified three major activities. The intern then completed the first stage allocations of costs to the activity cost pools, using data from last month's operations. The results appear below: Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of diners Number of parties served $ 24,780 5,900 parties Serving a diner Number of diners served $136,710 14,700 diners Serving a drink Number of drinks ordered $ 51,920 11,800 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. A group of diners who ask to sit at the same table are counted as a party Some costs, such as the costs of cleaning linen are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served. Prior to the ABC study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $294,000 and that 14.700 diners had been served. Therefore, the average cost per diner was $20. Required: . According to the ABC system, what is the total cost of serving each of the following parties of cliners? . A party of four diners that orders three drinks in total (Round your answers to 2 decimal places.) Check my work a. A party of four diners that orders three drinks in total (Round your answers to 2 decimal places.) ABC Cost Activity Cost Pool Serving parties Serving diners Serving drinks Total b. A party of two diners that does not order any drinks (Round your answers to 2 decimal places. Do not leave any empty spaces: input a 0 wherever it is required.) ABC Cost Activity Cost Pool Serving parties Serving diners Serving drinks Total svetu Submit Check my work C. A lone diner who orders two drinks (Round your answers to 2 decimal places.) ABC Cost Activity Cost Pool Serving parties Serving diners Serving drinks Total 2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners that orders three drinks in total b. A party of two diners that does not order any drinks C Alone diner who orders two drinks (Round your answers to 2 decimal places.) Submit Check my work 2. Convert the total costs you computed in () above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners that orders three drinks in total b. A party of two diners that does not order any drinks c. A lone diner who orders two drinks (Round your answers to 2 decimal places.) a per diner per dinar b per diner 3. This part of the question is not part of your Connect assignment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Principles Of Accounting Volume 1 Financial Accounting

Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax

1st Edition

1593995946, 978-1593995942

More Books

Students explore these related Accounting questions