.11 96% 3:17 PM Menu e glenn vaca- Unit- and Batch-Level Cost Drivers KC, a fast

Question

.11 96% 3:17 PM Menu e glenn vaca- Unit- and Batch-Level Cost Drivers KC, a fast-food restaurant, serves fried chicken, fried fish, and French fries. The managers have estimated the costs of a batch of fried chicken for KC's all-you-can- eat Friday Fried Fiesta. Each batch must be 100 pieces. The chicken is precut by the chain headguarters and sent to the stores in 10-piece bags. Each bag costs $3 Preparing a batch of 100 pieces of chicken with KC's special coating takes one employee two hours. The current wage rate is $8 per hour. Another cost driver is the cost of putting fresh oil into the fryers. New oil, costing $3, is used for each batch Round answers to two decimal places, when applicable. (a) Determine the cost of preparing one batch of 100 pieces (b) If management projects that it will sell 300 pieces of fried chicken, determine the total batch and unit costs Batch cost $

Explanation / Answer

a. 49

b. 147

unit cost= . 0.49

per unit= 49/100= 0.49

c. 124

d. 4

New batch cost:

increase= 53-49= 4

e. 130

Bag costs 30 [3*100/10] Labor 16 [2*8] Fresh oil 3 Batch cost 49

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