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Required: 1. Elvis allocates the monthly costs of the baking facility to the two restaurants based on the number of tables served in each
Required: 1. Elvis allocates the monthly costs of the baking facility to the two restaurants based on the number of tables served in each restaurant during the month. In April the costs were $57,000, of which $28,500 is fixed cost. The Beef Barn and the Fish Bowl each served 7.125 tables. How much of the joint cost should be allocated to each restaurant? O-Beef Barn: $38,000; Fish Bowl: $19,000 O Beef Barn: $19,000; Fish Bowl: $38,000 O Beef Barn: $21,000; Fish Bowl: $36,000 O Beef Barn: $28,500; Fish Bowl: $28,500 2. In May, total fixed and unit variable costs remained the same, but the Beef Barn served 4,750 tables and the Fish Bowl served 7,125. How much should be allocated to each restaurant? O Beef Barn: $19,000; Fish Bowl: $38,000 O Beef Barn: $20,900, Fish Bowl: $31,350 Beef Barn: $22,800, Fish Bowl: $34.200 O Beef Barn: $21,000; Fish Bowl: $28,500 3. Assume Elvis decides to use a dual allocation approach in which variable costs are traced directly to the user (based on tables served) and fixed costs are allocated evenly (because, on average, the two restaurants have equal activity levels). Assume the same table service outcomes as in requirement 2, how much should be allocated to each restaurant? 3. Assume Elvis decides to use a dual allocation approach in which variable costs are traced directly to the user (based on tables served) and fixed costs are allocated evenly (because, on average, the two restaurants have equal activity levels). Assume the same table service outcomes as in requirement 2, how much should be allocated to each restaurant? O Beef Barn: $19,000, Fish Bowl: $38,000 O Beef Barn: $20,900; Fish Bowl: $31,350 O Beef Barn: $22,800; Fish Bowl: $34,200 O Beef Barn: $23,750: Fish Bowl: $28,500
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