24/7 Homework Help

Get step by step solutions from experts with any question. Your first question is free!

Attach files (.png, .jpg, .txt, .pdf)
tutors online

Please include all instructions needed to answer the question and submit one question at a time to ensure faster response. See Disclaimer or FAQ

How it works

Ask a question

Type, take a picture, or paste your question with all necessary details to ensure high-quality responses.

Get an answer in less than 24hrs

Once our tutors receive the question, they'll begin. You'll get an email once the solution is ready.

Rate your tutor

We quarantee satisfaction or your question is free. Rate your tutor so they know how they did.


Browse Questions (page 645)


EXERCISE 7-14 Calculating and Interpreting Activity-Based Costing Data [LO7-3, L07-4] 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. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of diners ........ Serving a diner ......... Serving drinks ..... Number of parties served Number of diners served Number of drinks ordered $33,000 $138,000 $24,000 6,000 parties 15,000 diners 10,000 drinks 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 party 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 per diner?
Homework Help

Disclaimer

By using OneClass Homework Help, you agree to the following guidelines OneClass Homework Help is meant to help students.

We understand the intense pressure and time constraints faced by students around the world in the pursuit of academic excellence. However, the risk students take by violating their school's code of academic integrity is never worth any short-term gains. We reserve the right to refuse help to students who may be breaching academic integrity guidelines by cheating or plagiarizing.

As a user of this service, you agree to not use any of the material or information made available to you for the purposes of engaging in behavior that could be reasonably interpreted as academic misconduct. Examples include:

  • Turning in any work, solution or material obtained from OneClass Homework Help as your own
  • Utilizing our services to complete exams or assignments when explicit instructions have been given that prohibits external help

We take academic integrity extremely seriously and we reserve the right to suspend and terminate your account and services if you are in breach of our guidelines or site terms.

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit