Total costTotal activityServing a Party$ 43,2008,000 partiesServing a Diner$ 148,00020,000 dinersPrior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost forthe month was $263,200 and that 20,000 diners had been served. Therefore, the average cost per diner was $13.16 ($263,200 +20,000 diners = $13.16 per diner).b. A party of two diners who do not order any drinks.c. A lone diner who orders two drinks.Serving Drinks$ 72,00048,000 drinksRequired:1. Compute the activity rates for each of the three activities.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.Total$ 263,200b. A party of two diners who do not order any drinks.c. A lone diner who orders two drinks.3. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per diner forserving each of the following parties?a. A party of four diners who order three drinks in total.Complete this question by entering your answers in the tabs below.a. A party of four diners who order three drinks in totalb. A party of two diners who do not order any drinksc. A lone diner who orders two drinksRequired 1 Required 2 Required 3According to the activity-based costing system, what is the total cost of serving each of the following parties of diners?(Round your intermediate calculations and final answers to 2 decimal places.)Total

Activity-based costing system -The accounting technique known as "activity based costing," or "ABC,…

Total cost Total activity $ 43,200 8,000 parties $ 148,000 20,000 diners $ 72,000 48,000 drinks A party of four diners who order three drinks in total. A party of two diners who do not order any drinks. A lone diner who orders two drinks. $ 263, 200 ior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total e month was $263,200 and that 20,000 diners had been served. Therefore, the average cost per diner was $13.16 ($263,2 0,000 diners = $13.16 per diner). quired: Compute the activity rates for each of the three activities. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? A party of four diners who order three drinks in total. A party of two diners who do not order any drinks. A lone diner who orders two drinks. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per dine rving each of the following parties?

Total cost Total activity $ 43,200 8,000 parties $ 148,000 20,000 diners $ 72,000 48,000 drinks A party of four diners who order three drinks in total. A party of two diners who do not order any drinks. A lone diner who orders two drinks. $ 263, 200 ior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total e month was $263,200 and that 20,000 diners had been served. Therefore, the average cost per diner was $13.16 ($263,2 0,000 diners = $13.16 per diner). quired: Compute the activity rates for each of the three activities. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? A party of four diners who order three drinks in total. A party of two diners who do not order any drinks. A lone diner who orders two drinks. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per dine rving each of the following parties?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling Materials 33,250 Machine Setups 72,000 Inspections 20,800 Utilities 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 800 Material Moves 1,330 Machine Setups 16,000 Number of Inspections 4,000 Square Feet 180,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Order, Units 900 Direct Materials 112,600 Machine Hours 15,200 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 100 Number of Inspections 500 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials $fill…
Group work problems 1) The Rick Shaw Chair company makes twb types of rocking chairs, a plain chair and a fancy chair. Each rocking chair must be assembled and then finished. The plain chair takes 4 hours to assemble and 4 hours to finish. The fancy chair takes 8 hours to assemble and 12 hours to finish. The company can provide at most 160 worker-hours of assembling and 180 worker-hours of finishing a day. If the profit on a plain chair is $40 and the profit on a fancy chair is $65, how many rocking chairs of each type should the company make per day to maximize profits? What is the maximum profit?
A corporation makes several products. Because of a recent lack of skilled workers, the corporation has had a shortage of available labor hours. The following per unit data pertains to the related products: Selling price Variable cost Labor hours required Multiple Choice $12,000 The company only has 1,800 labor hours available next month. The company can only sell 800 units of each product a month. What is the maximum amount of contribution margin that it can generate next month? $19,000 $19,600 LO $30 $20 1 $19,800 ES $80 $40 6 CH $42 $20 2
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 14.61 2.31 1.13 Overhead (box, etc.) 0.28 Fixed costs per month 4,464.90 Direct labor Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 480 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,900 in profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine Cove's break-even point in units and sales dollars. Note: Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places. Break-Even Units Break-Even Sales Dollars Cakes
please solve all parts wthin 30 minutes
Cost of Services Sold Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials Direct labor Variable overhead Fixed overhead ? $472,500 15,000 18,000 Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory Required: Beginning $4,000 2,600 Ending There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. 1. Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0". Happy Home Helpers, Inc. Statement of Cost of Services Sold For the Coming Year 2. How does this cost of services sold…
Shipping costs for fish that is ordered by the restaurant are a mixed cost with variable and fixed cost components. Records indicate the Fish Company shipped 7,200 tons of halibut for $6,000 in May and 8,200 tons for $6,800 in June. What would be the expected shipping cost for shipping 8,000? $6,440 $9,750 $6,640 $6,200
A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling Materials 34,540 Machine Setups 63,000 Inspections 25,000 Utilities 25,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders Material Moves B00 1,340 Machine Setups 14,000 Number of Inspections 5,000 Square Feet 190,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Order, Units Direct Materials Machine Hours Direct Labor Hours Number of Purchase Orders Number of Material Moves Number of Machine Setups Number of Inspections Direct Materials Direct Labor Number of Material Moves 900 Number of Machine Setups Number of Inspections Number of Square Feet Occupied Total Order Cast 112,700 15,300 5,300 Number of Square Feet Occupied Determine how much the job would cast given the following activities: Do not round Intermediate computations and round final answers…
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 2.1 hours. On average, HHH completes about 21,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials $39,900 Direct labor 655,200 Variable overhead 21,000 Fixed overhead 25,200 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per cleaning.$fill in the blank 1per cleaning 2. Calculate the conversion cost per cleaning.$fill in the blank 2per cleaning 3. Calculate the total variable cost per cleaning.$fill in the blank 3per cleaning 4. Calculate the total service cost per cleaning.$fill in the blank 4per cleaning 5. What if rent on the office that Jean and Tom use to run HHH increased by $2,100? Which of the following statements best describes the effect of this on HHH's costs?
Solve the following problem: The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?