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Sewing parties Sewing diners Sewing drinks Total b. A party of two diners that does not order any drinks. (Round your answers to 2 decimal places.) Servrng parties Sewing drinks c. A lone diner who orders two drinks. (Round your answers to 2 decimal places.) MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are kilometers for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure. The following costs will be assigned using the ABC system: Driver and guard wages $ 876,000 Vehicle operating expense 294,000 Vehicle depreciation 162,000 Customer representative salaries and 192,000 expenses Office expenses 46,000 Administrative expenses 364,000 Total cost $1,934,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 35% 40% 15% 10% 100% Vehicle operating expense 75% 5% 0% 20% 100% Vehicle depreciation 70% 10% 0% 20% 100% Customer representative salaries and expenses 0% 0% 80% 20% 100% Office expenses 0% 20% 35% 45% 100% Administrative expenses 0% 10% 50% 40% 100% Required: Carry out the first-stage allocations of costs to activity cost pools. Pickup and Customer Travel Other Totals Delivery Service Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total costJane'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 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: Activity Cost Pool Activity Measure Total Cost Total Activity Sewing a party of Number of parties $13,905 5,150 parties diners served Serving a diner Number fdmers $ 97,110 12,450 diners served Sewing a drink Number f dr'm's $29,870 10,300 drinks ordered I 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 $199,200 and that 12,450 diners had been served. Therefore, the average cost per diner was $16. 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 five diners that orders four drinks in total. (Round your answers to 2 decimal places.) Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct Number of direct labour $ 19 per direct labour- labour hours hour Batch processing Number of batches $ 93 per batch Order processing Number of orders $ 177 per order Customer service Number of customers $1,330 per customer The company just completed a single order from SkateCo for 4,050 entry-level skateboards. The order was produced in 34 batches. Each skateboard required 04 direct labour-hours. The selling price was $135 per skateboard, the direct materials cost was $76.70 per skateboard, and the direct labour cost was $19.10 per skateboard. This was the only order from SkateCo for the year. Required: Prepare a report showing the customer margin on sales to SkateCo for the year. Sales Costs: Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead Customer margin Activity Cost Pool ABC Cost Serving parties Serving diners Serving drinks Total 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 five diners that orders four 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. per diner b per diner G. per diner
