Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hiram's Lakeside is a popular restaurant located on a Washington in Seattle. The owner of the restaurant has been trying to better understand costs at

image text in transcribed
Hiram's Lakeside is a popular restaurant located on a Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and as a s enior to conduct activity based costing study. The intem, in contation with the owner o f three major activities and then completed the stage locations of cost to the activity Oostpools. The results appear below Act Cost Pool Serving a party of diners Serving a diner Serving a drink Activity Measure Number of reserved Number of diens served Number of ordered Tots Cost $14.50 S 1110 $ 30 240 To Activ 5.600 parties 12 200 diners 10.BCO C 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 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 cinerssen or the number of drinks served 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 (including organization sustaining costs) was $180,000 and that 12.00 diners had been served. Therefore, the average cost per diner was $15. Required 1. According to the activity based costing system, what is the total cost of serving each of the following parties of diners? (Round your intermediate calculations and final answers to 2 decimal places) Total Cost a. A party of three diners who order five drinks in total Aparty of four diners who do not order any drinks Aparty of one diner who order thee drinks 2. Convert the total costs you computed in (1) above to cost per diner. In other words, what is the average cost per diner for serving each of the following parties? (Round your intermedi answers to 2 decimal places.) Average Cost Aparty of three who order version Aparty of four diners who do not orderary Aparty of one or wher e

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

Quality Management Audits In Nuclear Medicine Practices

Authors: International Atomic Energy Agency (IAEA)

1st Edition

9201121083, 978-9201121080

More Books

Students also viewed these Accounting questions

Question

The models used to analyse different national cultures.

Answered: 1 week ago

Question

The nature of the issues associated with expatriate employment.

Answered: 1 week ago