Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 3 2.85 point Gino's Restaurant is a a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to

image text in transcribed
Check my work 3 2.85 point Gino's Restaurant is a a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better under costs at the restaurant and has hired a student intem to conduct an activity based costing study. The intern, in consultation with the owner, identified the following major activities Action EVERY serving party of diners Huber of partive served Serving Number of devel Serving drinks Huber of drinks ordered A group of diners who ask to sit at the same table is counted as a party Some costs, such as the costs of cleaning inen, are the same whether one person is at a table or the table is ful. Other costs, such as washing dishes, depend on the number of dinen served Data concerning these activities are shown below. Seti Marty BRE Ving Total Total cost 143,200 140,000 $32,000 125.200 Total activity 0.000 parties 20.600 diners 48,000 dri Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $263,200 and that 20.000 diners had been served. Therefore, the average cost per diner was $13.46 ($263.200 20,000 diners - $13.16 per diner) Required: 1. Compute the activity rates for each of the three activities. 2. According to the activity based costing system, what is the total cost of sering each of the following parties of diners? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks c. Alone diner who orders two drinks 3. Convert the total costs you computed in part (2) 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 who order three drinks in total b. A party of two diners who do not order any drinks c. A lone diner who orders two drinks rences in the tabs below

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

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

Company Accounting

Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford

8th Edition

0470819731, 978-0470819739

More Books

Students also viewed these Accounting questions

Question

Explain global human resource management.

Answered: 1 week ago

Question

Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

Discuss whistleblower protection under OSHA.

Answered: 1 week ago