Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

data-id-59f7e625470422490506703e102542F2005 ad-bade LEAD) costing study. The intern, in consultation with the emner, identified three major activities and then completed the first stage allocations of costs

image text in transcribed
data-id-59f7e625470422490506703e102542F2005 ad-bade LEAD) costing study. The intern, in consultation with the emner, identified three major activities and then completed the first stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Meeste Tost Cost Total Activity Serving a party of diners Number of paties served $33,000 5,000 partes Serving a diner Number of diners served $138.000 15.000 diners Serving drinks Number of drinks ordered $24.000 10.000 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. Page 348 Some costs, such as the cost of cleaning the lines 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 links served. Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total com for the month (including organization-sustaining costs) was $240.000 and that 15.000 diners had been served. Therefore , the average cost per diner was $16. Required: 1. According to the activity based conting system, what is the total cost of serving much of the following partita od dort A party of four diners who order the drinks in total b. A party of two diners who do not onder any drinks c. A party of one diner who orders two drink 2. Convert the total cost you computed in (1) above to comperder. In other words, what is the cost per detine for serving each of the folosit partie a. A party of four diners who order the drinks in total b. Apany of two diners who do not onder data CA party or diner who anders as die 3. Why do the costs perder for the the different parts differ from each other and from the alco oro per EXERCISE 15. Assim 0722202 G data-id-59f7e625470422490506703e102542F2005 ad-bade LEAD) costing study. The intern, in consultation with the emner, identified three major activities and then completed the first stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Meeste Tost Cost Total Activity Serving a party of diners Number of paties served $33,000 5,000 partes Serving a diner Number of diners served $138.000 15.000 diners Serving drinks Number of drinks ordered $24.000 10.000 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. Page 348 Some costs, such as the cost of cleaning the lines 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 links served. Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total com for the month (including organization-sustaining costs) was $240.000 and that 15.000 diners had been served. Therefore , the average cost per diner was $16. Required: 1. According to the activity based conting system, what is the total cost of serving much of the following partita od dort A party of four diners who order the drinks in total b. A party of two diners who do not onder any drinks c. A party of one diner who orders two drink 2. Convert the total cost you computed in (1) above to comperder. In other words, what is the cost per detine for serving each of the folosit partie a. A party of four diners who order the drinks in total b. Apany of two diners who do not onder data CA party or diner who anders as die 3. Why do the costs perder for the the different parts differ from each other and from the alco oro per EXERCISE 15. Assim 0722202 G

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

General Accounting Financial Accounting

Authors: Bbc Kikumbi Mwepu

1st Edition

6206329488, 978-6206329480

More Books

Students also viewed these Accounting questions