2. BBQ Bangladesh is a popular restaurant located on Dhaka. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities. She 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 Serving a party of diners ..... Number of parties served $12,000 5,000 parties Serving a diner .. Number of diners served $90,000 12,000 diners Serving a drink . Number of drinks ordered $26,000 10,000 drinks Required: 1. Estimate the activity rate of each cost pool 2 According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in total. b. A party of two diners who do not order any drinks. c. A lone diner who orders two drinks.
2. BBQ Bangladesh is a popular restaurant located on Dhaka. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities. She 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 Serving a party of diners ..... Number of parties served $12,000 5,000 parties Serving a diner .. Number of diners served $90,000 12,000 diners Serving a drink . Number of drinks ordered $26,000 10,000 drinks Required: 1. Estimate the activity rate of each cost pool 2 According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in total. b. A party of two diners who do not order any drinks. c. A lone diner who orders two drinks.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 39P: Randy Harris, controller, has been given the charge to implement an advanced cost management system....
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please answer the first few parts atleast
![2. BBQ Bangladesh is a popular restaurant located on Dhaka. The owner of the restaurant has
been trying to better understand costs at the restaurant and has hired a student intern to conduct
an activity-based costing study. The intern, in consultation with the owner, identified three major
activities. She 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
Serving a party of diners ...... Number of parties served
$12,000
5,000 parties
Serving a diner ..
. Number of diners served
$90,000 12,000 diners
Serving a drink .
Number of drinks ordered
$26,000 10,000 drinks
Required:
1. Estimate the activity rate of each cost pool
2 According to the activity-based costing system, what is the total cost of serving each of the
following parties of diners?
a. A party of four diners who order three drinks in total.
b. A party of two diners who do not order any drinks.
c. A lone diner who orders two drinks.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc38bf538-09e9-4747-a4ce-88207c9f5b69%2Fd010a3b6-91e7-4b1f-abfc-aa748eaefc1f%2Fsusypl6_processed.png&w=3840&q=75)
Transcribed Image Text:2. BBQ Bangladesh is a popular restaurant located on Dhaka. The owner of the restaurant has
been trying to better understand costs at the restaurant and has hired a student intern to conduct
an activity-based costing study. The intern, in consultation with the owner, identified three major
activities. She 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
Serving a party of diners ...... Number of parties served
$12,000
5,000 parties
Serving a diner ..
. Number of diners served
$90,000 12,000 diners
Serving a drink .
Number of drinks ordered
$26,000 10,000 drinks
Required:
1. Estimate the activity rate of each cost pool
2 According to the activity-based costing system, what is the total cost of serving each of the
following parties of diners?
a. A party of four diners who order three drinks in total.
b. A party of two diners who do not order any drinks.
c. A lone diner who orders two drinks.
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