Question
Rates cost driver driver units rate Kitchen 239,500 Food cost 198,000 1.21 per food dollar Service 137,000 People 16,200 8.46 per person Seating 10,500 Week
| Rates | cost | driver | driver units | rate | |||
| Kitchen | 239,500 | Food cost | 198,000 | 1.21 | per food dollar | ||
| Service | 137,000 | People | 16,200 | 8.46 | per person | ||
| Seating | 10,500 | Week | 42 | 250.00 | per week | ||
| Admin | 54,500 | Party | 3,600 | 15.14 | per party | ||
| Charge for day of the week | |||||||
| Wednesday | 25.00 | ||||||
| Thursday | 50.00 | ||||||
| Friday | 75.00 | ||||||
| Saturday | 75.00 | ||||||
| Sunday | 25.00 | ||||||
| Cost of Karp Party | |||||||
| Food Cost | $ 96.00 | ||||||
| Kitchen | 116.12 | ||||||
| Service | 67.65 | ||||||
| Seating | 75.00 | ||||||
| Admin | 15.14 | ||||||
| Total Cost | $ 369.91 | ||||||
The owner is considering changing food from a direct cost to just another cost pool with number of people in the party as the cost driver. Give the owner your advice about this idea: should she do it or not? Explain.
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International Accounting
Authors: Frederick D. Choi, Gary K. Meek
7th Edition
978-0136111474, 0136111475
