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Vinil7 [7]
3 years ago
13

Gino's Restaurant is a popular resaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better underst

and 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 Activity Measure Serving a party of diners.............Number of parties served Serving a diner.......................... Number of diners served Serving drinks........................... Number of drinks served A group of diners who ask to sit at the same table is 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. Data concerning these activities are shown below: Serving a Party Serving a Diner Serving Drinks Total Total cost.............. $32,800 $211,200 $69,600 $313,600 Total activity............. 8,000 parties 32,000 diners 58,000 drinks 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 was $313,600 and that 32,000 diners had been served. Therefore, the average cost per diner was $9.80 ($313,600/32,000 diners = $9.80 per diner). Required: 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 ordered three drinks in total b. 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 (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 party of two diner who do not order any drinks c. A lone diner who orders two drinks 4. Why do the costs per diner for the three different parties differ from each other and from the overall average coast of $9.80 per diner?

Business
1 answer:
RideAnS [48]3 years ago
7 0

The answer & explanation for this question is given in the attachment below.

 

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<span>The GDP of Gulmirah is equal to approximately "</span>$19.70 billion".

All of these exercises add to the Gross domestic product of a nation. The Gross domestic product estimation additionally represents spending on exports and imports. In this way, a nation's Gross domestic product is a measure of consumer spending (C) in addition to business investment (I) and government spending (G) and additionally its net exports, which is exports-imports (X-M).
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3 years ago
Adjusts the accounts at the end of each month. cruella's adjusting entry at the end of february should include a debit to rent e
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After each month, adjust the accounts. Cruella's adjusting entry at the end of February should include a debit to rent expense for $100.

<h3>What is an adjusting entry?</h3>

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8 0
1 year ago
What does the word speculation mean to an economist? investing in low-risk stocks with surplus money investing in a type of stoc
Eddi Din [679]
The correct answer among the choices given is the third option. Speculation would mean to an economist as making high-risk investments with borrowed money. It is the purchase of something hoping for it to be more valuable at a certain time.
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3 years ago
Read 2 more answers
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.6
storchak [24]

Answer:

b. 18,602 units.

Explanation:

First, we need to use last year's information to determine last year's fixed costs.

Price (P1) = $7.68

Variable costs (VC1) = $2.25

Units sold to break-even (n1) = 21,800

At the break-even point, net income is zero and the fixed cost can be found by:

N=0 = n_1*(P_1-VC_1) -FC_1\\0=21,800*(\$7.68-\$2.25) - FC_1\\FC = \$118,374

With information from last, information for the current year can be determined:

Price (P2) = $10.00

Variable costs (VC2) = $2.25 x 1.3333 = $3.00

Fixed cost (FC2) = $118,374 x 1.10 = $130,211.4

The number of units required to break even is:

N=0 = n_2*(P_2-VC_2) -FC_2\\0=n_2*(\$10-\$3) - \$130,211.4\\n_2 = 18,601.63\ units

Rounding up to the nearest whole unit, Dorcan Corporation must sell 18,602 units to break-even.

7 0
3 years ago
What is the difference between explicit collusion and implicit​ collusion? Unlike explicit​ collusion, implicit collusion
lesya [120]

Answer:

The basic difference between both are explained below.

Explanation:

Explicit collusion is where firms meet and agree to charge the same price, and an example of implicit collusion is price leadership. Unlike explicit collusion, implicit collusion unlike explicit collusion, implicit collusion is where firms signal to each other without actually meeting and agreeing to charge the same price.

Unlike explicit collusion, wherever the occurrence of an accommodation that would lend ammunition for an antitrust court case might be unscrewed, implied collusion is challenging to document as well as to verify. Implicit collusion frequently seems to be nothing more than all firms individually responding to shifting market circumstances.

4 0
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