Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Sven's Cookhouse is popular restaurant located on Lake Union in Seattle. Owner of restaurant has been trying to better understand costs at restaurant and has hired student intern to conduct activity-based costing study. Intern, in consultation with owner, recognized three major activities. She then completed first-stage allocations of costs to activity cost pools, using data from last month's operations. Results appear below:

Activity Cost Pool Activity Measure Total Cost Total Activity
Serving a party of diners Number of parties served $12,000 5,000 drinks
Serving a diner Number of diners served $90,000 12,000 drinks
Serving a drink Number of drinks ordered $26,000 10,000 drinks

Above costs include all of costs of restaurant except for organization-sustaining costs like rent, property taxes, and top-management salaries. Group of diners who ask to sit at same table are counted as a party. Some costs, like costs of cleaning linen, are same whether one person is at table or table is full. Other costs, like washing dishes, depend on the number of diners served.

Previous to activity-based costing study, owner knew very little about costs of the restaurant. He knew that  total cost for month (including organization-sustaining costs) was $180,000 and that 12,000 diners had been served. Hence, the average cost per diner was $15.

Required:

Convert total costs you find outd to costs per diner. Average cost per diner for serving each of given parties?

a. A party of four diners who three drinks in total.

b. A party of four diners who do not order any drinks.

c. A lone diner who orders two drinks.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918364

Have any Question? 


Related Questions in Accounting Basics

Individual internal accountants report to managementyou are

Individual Internal Accountants Report to Management You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary f ...

I on 1115 big co acquired 70 of little co for 350000 euros

I) On 1/1/15 Big Co. acquired 70% of Little Co. for 350,000 Euros (€). The fair value of the non-controlling interest on that date was €150,000. Little's book value on that date was €500,000, and all assets and liabiliti ...

Question 2-64start from the trial balance and the posted

Question 2-64 Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18, as follows HAUPT CONSULTING Trial Balance December 18, 2010 Balance Account Tide Debit Credit Cash $7,70 ...

Question 1 this problem continues the haupt consulting

Question 1: This problem continues the Haupt Consulting situation from Problem 2-64 of Chapter 2. Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18, as follows: HAUPT CO ...

Assignment lasa ipo presentation amp myaccountinglab

Assignment: LASA: IPO Presentation & MyAccountingLab Post-Tests This assignment will consist of two parts. Part I: IPO Presentation: You work for a medium sized privately held electronics firm which is considering transi ...

Case - ethics and the managergo to page 130 case 3-30

CASE - Ethics and the Manager Go to page 130, Case 3-30, Ethics and the Manager. Let's discuss the questions, make value-added comments, points, and share personal experiences of unethical situations. Cristin Madsen has ...

Accountingbullimagine you are a consultant hired to convert

Accounting • Imagine you are a consultant hired to convert a manual accounting system to an automated system. • Suggest the key advantages and disadvantages of automating a manual accounting system. • Identify the most i ...

What went wrongfriends bank is seeking to hire a new teller

What Went Wrong? Friend's Bank is seeking to hire a new teller. Darrell has applied for the position. His application states that five years ago, he was convicted for embezzlement as a teller. In the interview, Darrell r ...

Please answer the following question analysis needed with

Please answer the following question. Analysis needed with explanation. Use in-text citation and reference page if necessary in APA format. Answers should be must be plagiarism free. Zaldor Corporation sells a specialize ...

Learning outcomescode descriptiona1 in-depth and systematic

Learning outcomes Code Description A1 in-depth and systematic understanding of key investment concepts to facilitate strategic real estate investment decision-making A4 critical awareness and understanding of the evolvin ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro