Fallow the format when doing the solution like in the picture Pop's Burger HavenPop's Burger Haven produces and sells quarter-pound hamburgers. Each burger sells for $3. DuringDecember, Pop's sold 10,000 burgers (the average amount sold each month). The restaurant employscooks, servers, and one supervisor (the owner, Jane Peterson). All cooks and servers are part-timeemployees. Pop's maintains a pool of part-time employees so that the number of employees scheduled canbe adjusted to the changes in demand. Demand varies on a weekly as well as a monthly basis.A janitor is hired to clean the building on a weekly basis. The building is leased from a local real estatecompany. The building has no seating capabilities. All orders are filled on a drive-through basis.The supervisor spends 30% of her time supervising food production, and the balance of her time supervisingcounter staff and on various other administrative activities. The following costs were incurred duringDecember:AdditionalPop's Burger HavenHamburger MeatLettuceTomatoesBunsOther ingredientsCook's wagesServers' wagesSupervisor's salaryUtilitiesDepreciation:Cooking equip.Cash RegisterAdvertisingRent.Janitorial supplies$3,8503803204,5004,4204,0603,000500200100800the Probems502050Janitorial wages120Utility costs consist of a $50 fixed cost with the balance depending upon usage.39 Pop's Burger Haven: discussionpoints1. Prepare an income statement using GAAP.2. Classify the costs of Pop's December operation in oneof the following categories: direct materials, direct labor,overhead, and selling and administration.3. Prepare a variable costing income statement.4. What does it cost Pop's to produce and sell one morehamburger?S. What is the additional profit, if Pop's produces andsells one more hamburger?6. How many hamburgers must Pop's sell in order to stayin business?GAAP Income StatementSalesCOGSGMSellingAdminNIPop's Burger HavenACE 3200 HEE MIN LET30,000Used primarily forexternal reporting.Contribution MarginIncome StatementSalesVCCMFCNIACC3200 HEEMIN LEE30,000Used primarily bymanagement.

Direct costs are all those costs which indurred in the production of an item such as direct…

Pop's Burger Haven produces and sells quarter-pound hamburgers. Each burger sells for $3. During December, Pop's sold 10,000 burgers (the average amount sold each month). The restaurant employs cooks, servers, and one supervisor (the owner, Jane Peterson). All cooks and servers are part-time employees. Pop's maintains a pool of part-time employees so that the number of employees scheduled can be adjusted to the changes in demand. Demand varies on a weekly as well as a monthly basis. A janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis. The supervisor spends 30% of her time supervising food production, and the balance of her time supervising counter staff and on various other administrative activities. The following costs were incurred during December:

Pop's Burger Haven produces and sells quarter-pound hamburgers. Each burger sells for $3. During December, Pop's sold 10,000 burgers (the average amount sold each month). The restaurant employs cooks, servers, and one supervisor (the owner, Jane Peterson). All cooks and servers are part-time employees. Pop's maintains a pool of part-time employees so that the number of employees scheduled can be adjusted to the changes in demand. Demand varies on a weekly as well as a monthly basis. A janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis. The supervisor spends 30% of her time supervising food production, and the balance of her time supervising counter staff and on various other administrative activities. The following costs were incurred during December:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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