Problem 3. (30 points) The application of Activity-Based Cesting The restaurant

Question

Problem 3. (30 points) The application of Activity-Based Cesting The restaurant is a franchise located in the in Caual Service Rstaurat se located in the southwestern USA. It is a restaurant and has about 50 seats tne snuty will caleulate Activity-Based d nporat the following steps: as selected by management. Students 6 peneral ledger (use the provided income Please note that the payroll for the BOH was $18,000 for April, 2016. statements for A (fols 521 and the payroll for the model below (E the 2016-Table 1) into major cost Figure 1 ABC Model for Restaurants (used in this case study General Ledger Unit-Level Prodact

Explanation / Answer

a) Overhead cost pools

Facility sustainability would include -

Activity Cost

1)Accounting 250

2) Security 33

3)Equipment Rental 1829

4)Insurance 312

5) License Fees 500

6) Rent and Maintenance 1820

TOTAL 4744

Personnel would include -

BOH will include-

Unit level

Activity Cost

1)Bank Charges 49

2)Telephone 143

TOTAL 192

Batch Level

1) Office supplies 408

2) Linen And laundary 677

3) Utilities 1456

TOTAL 2541

FOH would include -

Batch level

Entertainment 335

1

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