Janes Cookhouse is a popular restaurant located in a scenic setting. The owner of the...
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Accounting
Janes Cookhouse is a popular restaurant located in a scenic setting. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an ABC study. The intern, in consultation with the owner, identified three major activities. The intern then completed the firststage allocations of costs to the activity cost pools, using data from last months operations. The results appear below:The above costs include all of the costs of the restaurant except for organizationsustaining 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 ABC study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month
including organizationsustaining costs was $ and that diners had been served. Therefore, the average cost per diner
was $
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