Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Choose 3 menu items from the menu of the restaurant. Familiarize yourself with the products including the ingredients, processing method, general selling price in your

Choose 3 menu items from the menu of the restaurant. Familiarize yourself with the products including the ingredients, processing method, general selling price in your area, packaging requirements, and accessories

From the cost information you were able to find or generated on your own, provide responses in Microsoft Excel to the following question

  1. Compute the cost of each product under the simple/traditional costing method. For period costs, use direct labor hours.
  2. Compute the net operating profit margin of each product using the simple/traditional costing method.
  3. Compute the total overhead and period cost allocation under activity-based costing (ABC) assumptions for each product.
  4. Compute the per unit ABC cost of each product.
  5. Compute the net profit margin of each product using the ABC costing method.
  6. Compare the net profit margin of the products under the simple/traditional cost assignment and the ABC assignment for each product. Evaluate the difference.

**Make up any numbers that maybe missing for calculations**

Fettuccini Alfredo (assume makes 4 servings) Salad & Breadsticks ($4) by self otherwise included

$15.99 per plate

Cream Cheese $4 for 16oz Bag Salad $5 4 servings

Parmesan Cheese Fresh $4 2 cups 12 breadsticks $4 a bag

Butter $3 pack (4 sticks) Butter .50 for 12breadstick

Seasoning $2 per pack Garlic $.69 for 12breadstick

Noodles $3 pack 4 servings Dressing $1.50 per Salad

Spaghetti with meat sauce (17.99 per plate)

2 cans tomato paste $3

1 can tomato sauce 1.50

3lbs ground beef $20

Garlic .49

Onion .59

Noodles $5 family pack 10 servings

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

Cash, Corruption And Economic Development

Authors: Vikram Vashisht

1st Edition

1032096888, 9781032096889

More Books

Students also viewed these Accounting questions