Homework Help is Here – Start Your Trial Now!
Business
Accounting
Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The restaurant's owner wants to better understand his costs and hired a student Intern to conduct an activity-based costing study. The Intern Identified three activities, completed the first- stage cost allocations and gathered the activity measure data shown below. Activity Cost Pool Serving a party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $ 15,900 $ 120,900 $ 33,280 Total Activity 5,300 parties 13,000 diners 10,400 drinks The above costs exclude organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the restaurant costs. She only knew the total cost for the month (including organization-sustaining costs) was $180,000 and 12,000 diners had been served. Therefore, the average cost per diner was $15. Required: 1 and 2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of diners? Note: Round your Intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places. a. A party of four diners who order three drinks in total. b. A party of five diners who do not order any drinks. c. A party of one diner who orders three drinks. Total Cost Average Cost per diner per diner per diner

Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The restaurant's owner wants to better understand his costs and hired a student Intern to conduct an activity-based costing study. The Intern Identified three activities, completed the first- stage cost allocations and gathered the activity measure data shown below. Activity Cost Pool Serving a party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $ 15,900 $ 120,900 $ 33,280 Total Activity 5,300 parties 13,000 diners 10,400 drinks The above costs exclude organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the restaurant costs. She only knew the total cost for the month (including organization-sustaining costs) was $180,000 and 12,000 diners had been served. Therefore, the average cost per diner was $15. Required: 1 and 2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of diners? Note: Round your Intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places. a. A party of four diners who order three drinks in total. b. A party of five diners who do not order any drinks. c. A party of one diner who orders three drinks. Total Cost Average Cost per diner per diner per diner

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Hanshaben 

Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The restaurant's owner wants to better understand his costs and hired a student Intern to conduct an activity-based costing study. The Intern Identified three activities, completed the first- stage cost allocations and gathered the activity measure data shown below. Activity Cost Pool Serving a party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $ 15,900 $ 120,900 $ 33,280 Total Activity 5,300 parties 13,000 diners 10,400 drinks The above costs exclude organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the restaurant costs. She only knew the total cost for the month (including organization-sustaining costs) was $180,000 and 12,000 diners had been served. Therefore, the average cost per diner was $15. Required: 1 and 2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of diners? Note: Round your Intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places. a. A party of four diners who order three drinks in total. b. A party of five diners who do not order any drinks. c. A party of one diner who orders three drinks. Total Cost Average Cost per diner per diner per diner
Transcribed Image Text:Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The restaurant's owner wants to better understand his costs and hired a student Intern to conduct an activity-based costing study. The Intern Identified three activities, completed the first- stage cost allocations and gathered the activity measure data shown below. Activity Cost Pool Serving a party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $ 15,900 $ 120,900 $ 33,280 Total Activity 5,300 parties 13,000 diners 10,400 drinks The above costs exclude organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the restaurant costs. She only knew the total cost for the month (including organization-sustaining costs) was $180,000 and 12,000 diners had been served. Therefore, the average cost per diner was $15. Required: 1 and 2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of diners? Note: Round your Intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places. a. A party of four diners who order three drinks in total. b. A party of five diners who do not order any drinks. c. A party of one diner who orders three drinks. Total Cost Average Cost per diner per diner per diner
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS