Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jordan's Lakeside is a popular restaurant located on Lake Muskoka in Ontario. The owner of the restaurant has been trying to better understand costs at

image text in transcribed
image text in transcribed
Jordan's Lakeside is a popular restaurant located on Lake Muskoka in Ontario. 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 the following major activities Activity Cost Pool Serving a party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered 2 One or more diners who ask to sit at a 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. Data concerning these activities are displayed below: Serving Party $ 73,100 8,500 parties Serving a Diner $129,600 13,500 diners Servings 562, 100 11.500 den Total cost Total activity Total $264,500 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 was $264.800 and that 13,500 diners had been served Therefore, the average cost per diner was approximately 51967 - $264 B00 - 13.500 diners Required: 1. Compute the activity rate for each of the three activities. (Round your answers to 2 decimal places.) Serving Serving Sorina Party Help Save 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 was $264.800 and that 13,500 diners had been served. Therefore, the average cost per diner was approximately 51961 - $264,800 13,500 diners) Required: 1. Compute the activity rate for each of the three activities. (Round your answers to 2 decimal places.) Serving a Party Serving a Diner Serving Drink Cost per unit of activity 2. According to the ABC system, what is the total cost of serving each of the following parties of diners? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Total Cost a Aparty of two diners who order two drinks in total b A party of one diner who do not order any drinks CA party of two diners who orders throe drinks

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_2

Step: 3

blur-text-image_3

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

Study Guide Working Papers For College Accounting, Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

23rd Edition

0357474740, 9780357474747

Students also viewed these Accounting questions

Question

Describe the concept of diversity.

Answered: 1 week ago

Question

Summarize forecasting human resource availability.

Answered: 1 week ago