Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 inter 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 Serving party of diners Serving a diner Serving a drink Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $24.700 $136,710 $ 51,920 Total Activity 5,900 parties 14,700 diners 11,800 drinks OM 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: 1. According to the ABC system, what is the total cost of serving each of the following parties of diners? 6. A party of four diners that orders three drinks in total (Round your answers to 2 decimal places.) Hong X MALDAVINIRSIDATO Oto X Connect education.com/et/map/indexhtml?con conexternal browserwunchal-http253A%252F%252Fnewconnectmheducation.com%252F/activity/qu Youtube Maps Prime Video 123 Clearview - Timesh woudlem Darson eastlink OUTLOOK Prev Help Save & part 3 Required: 1. According to the ABC system, what is the total cost of serving each of the following parties of diners a. A party of four diners that orders three drinks in total (Round your answers to 2 decimal places) Activity to ABC CON Serving parties Serving diners Sueving drinks Total b. Aparty of two diners that does not order any drinks (Round your answers to 2 decimal places. Do not leave any empty spaces input no wherever it is required) Action Cost Pool ABC Cost Saving parts Serving diners Serving drinks Total Pro 11 IH Score > to search O BE > 9 8 C 5 6 7 00 o R . Y O P c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) ABC Cosi Activity Cost Pool Serving parties Serving diners Serving drinks Total OK 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. A lone diner who orders two drinks (Round your answers to 2 decimal places.) a b per diner per diner por diner 3. Not available in Connect 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 inter 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 Serving party of diners Serving a diner Serving a drink Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $24.700 $136,710 $ 51,920 Total Activity 5,900 parties 14,700 diners 11,800 drinks OM 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: 1. According to the ABC system, what is the total cost of serving each of the following parties of diners? 6. A party of four diners that orders three drinks in total (Round your answers to 2 decimal places.) Hong X MALDAVINIRSIDATO Oto X Connect education.com/et/map/indexhtml?con conexternal browserwunchal-http253A%252F%252Fnewconnectmheducation.com%252F/activity/qu Youtube Maps Prime Video 123 Clearview - Timesh woudlem Darson eastlink OUTLOOK Prev Help Save & part 3 Required: 1. According to the ABC system, what is the total cost of serving each of the following parties of diners a. A party of four diners that orders three drinks in total (Round your answers to 2 decimal places) Activity to ABC CON Serving parties Serving diners Sueving drinks Total b. Aparty of two diners that does not order any drinks (Round your answers to 2 decimal places. Do not leave any empty spaces input no wherever it is required) Action Cost Pool ABC Cost Saving parts Serving diners Serving drinks Total Pro 11 IH Score > to search O BE > 9 8 C 5 6 7 00 o R . Y O P c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) ABC Cosi Activity Cost Pool Serving parties Serving diners Serving drinks Total OK 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. A lone diner who orders two drinks (Round your answers to 2 decimal places.) a b per diner per diner por diner 3. Not available in Connect

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

Financial Accounting

Authors: Anne Britton, Chris Waterston

4th Edition

0273703609, 978-0273703600

More Books

Students also viewed these Accounting questions