1.
Total Cost [A] | Total Activity [B] | Cost per unit of activity [A/B] | ||
Serving a party | $32,800 | 8000 | $4.10 | Per party |
Serving a dinner | $211,200 | 32000 | $6.60 | Per dinner |
Serving Drinks | $69,600 | 58000 | $1.20 | Per drink |
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2.
a)
Party of 4 persons who order a total of 3 drinks:
Activity cost pools | Activity rate | Activity | ABC Cost |
Serving parties | $4.10 | 1 party | $4.80 |
Serving diners | $6.60 | 4 diners | $26.40 |
Serving drinks | $1.20 | 3 drinks | $3.60 |
Total | $34.80 |
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b)
party of 2 persons who order no drinks:
Activity cost pools | Activity rate | Activity | ABC Cost |
Serving parties | $4.10 | 1 party | $4.80 |
Serving diners | $6.60 | 2 diners | $13.20 |
Serving drinks | $1.20 | 0 drinks | $0.00 |
Total | $18.00 |
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c)
Party of 1 person who orders 2 drinks:
Activity cost pools | Activity rate | Activity | ABC Cost |
Serving parties | $4.10 | 1 party | $4.80 |
Serving diners | $6.60 | 1 diners | $6.60 |
Serving drinks | $1.20 | 2 drinks | $2.40 |
Total | $13.80 |
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3.
a) | Party of 4 persons who order a total of 3 drinks | $34.80 / 4 | $8.70 per diner |
b) | Party of 2 persons who order no drinks | $18 / 2 | $9 per diner |
c) | Party of 1 person who orders 2 drinks | $13.80 / 2 | $6.90 per diner |
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 Some costs, such as...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: Activity Cost Pool Serving a party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of dinero served Number of drinks ordered A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 the following major activities: 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 A group of diners who...