Sophia's Restaurant served 5,700 meals last quarter. Sophia recorded the following costs with those meals. Variable costs: Ingredients used Direct labor Indirect materials and supplies Utilities Fixed costs: Managers' salaries Rent Depreciation on equipment (straight-line, time basis) Other costs $14,700 11,900 6,700 3,180 25,500 21,500 5,500 4,400 Required: Suppose that Sophia expects to serve 20 percent more meals in the next quarter. Unit variable costs are expected to remain unchanged. However, Sophia knows that if the restaurant serves over 6,270 meals in a quarter, she must hire an additional manager (part-time) at a cost of $7,650 for the quarter. Other fixed costs are expected to increase by 10 percent. Calculate the unit cost and the total cost if 6,840 meals are served next quarter. (Round "Unit costs" answer to 2 decimal places.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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