Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

qq4 Jane's Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant hos been trying to better understand costs at

qq4
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 hos 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 intern then completed the first-stage allocations of costs to the activity cost pools, using data from last month's operations. The results appear below: The above costs include oll of the costs of the restourant except for organization-sustoining costs such as rent, property toxes, and top: management solaries. 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, ore the same whether one person is at a table or the toble is fult Other costs, such os washing dishes, depend on the number of diners served. Prior to the ABC study, the owner knew very little about the costs of the restourant She knew that the totol cost for the month (including organizotion-sustaining costs) was $267,900 and that 14,100 diners had been served. Therefore, the average cost per dinet wos $19 Required: 1. According to the ABC system, what is the toral cost of serving each of the following parties of diners? C. A porty of four diners that orders three drinks in toral. (Round your anowers to 2 decimal places.) According to the ABC system, what is the total cost of serving each of the following parties of diners? A party of four diners that orders three drinks in total. (Round your answers to 2 decimal places.) b. A porty of two diners that does not order any drinks. (Round your answers to 2 decimal places. Do not leove any empty speces; input 00 wherever it is required.) c. A lone dinet who orders two dranks. (Round your answers to 2 decimal places.) 2 Convert the total costs you computed in (i) above to costs per diner. In other words, what is the average cost per dinet for serving each of the following porties? - A party of four diners that orders three drinks in totot b. A party of two diness that does not order ony drinks c. A lone dinet who orders two drinks (Round your answers to 2 decimol ploces.)

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

Accounting For Beginners

Authors: Warren Piper Ruell

1st Edition

1713479397, 978-1713479390

More Books

Students also viewed these Accounting questions

Question

12. What are four things you can do to be an effective negotiator?

Answered: 1 week ago