Reference no: EM13486816
Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. 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 three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below.
.PNG)
The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries.
A group of diners who ask to sit at the same table are counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served.
Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $240,000 and that 15,000 diners had been served. Therefore, the average cost per diner was $16.
Required:
1. 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.
b. A party of two diners who do not order any drinks.
c. A lone diner who orders two drinks.
2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties?
a. A party of four diners who order three drinks in total.
b. A pasty of two diners who do not order any drinks.
c. A lone diner who orders two drinks.
3. Why do the costs per diner for the three different parties differ from each other and from the overall average cost of $16 perdiner?
|
Explain hydrogenation of carbon double bonds
: Hydrogenation of carbon double bonds C=C (i.e. adding a hydrogen on each carbon atom and thus reducing the double bond into a single bond: H-C-C-H) is a very common process in organic and polymer chemistry.
|
|
Allocating joint costs
: Assign the joint land and improvement costs to the lots using the value basis of allocation and compute the average cost per lot in the Canyon section and in the Hilltop section.
|
|
Compute the cost per cost driver
: Compute the cost per cost driver for each of the three cost centers and use the results from part 1 to allocate costs from each of the three cost centers to both financial planning and tax preparation.
|
|
Define the heat capacity of the bomb calorimeter
: When 0.564g of biphenyl (C12H10) undergoes combustion in a bomb calorimeter, the temperature rises from 25.3C to 29.8.C Find Delta Erxn for the combustion of biphenyl in kJ/mol biphenyl. The heat capacity of the bomb calorimeter, determined in a s..
|
|
What is the total cost of serving each of following party
: Why do the costs per diner for the three different parties differ from each other and from the overall average cost of $16 perdiner?
|
|
Find the precise energy of the electron
: An electron that has an energy of approximately 23 eV moves between rigid walls 1.8 nm apart. Find the precise energy of the electron
|
|
How many units were actually worked
: Complete the Work in Process - How many units were actually worked on during the month of May and how many units are in process at May 31 and what are the total costs to account for?
|
|
Evaluate the hydronium ion concentration
: Calculate the hydronium ion concentration and the pH of the solution that results when 20.0 mL of 0.15M acetic acid, is mixed with 5.0mL of 0.17M sodium hydroxide.
|
|
Find the nuclear density
: For the real or imaginary nucleus of 85X210, find the net electrical charge of the nucleus, the approximate radius of the nucleus, and the nuclear density
|