KC, a fast-food restaurant, serves fried chicken, fried fish,and French fries. The managers have...

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Accounting

KC, a fast-food restaurant, serves fried chicken, fried fish,and French fries. The managers have estimated the costs of a batchof fried chicken for KC's all-you-can-eat Friday Fried Fiesta. Eachbatch must be 100 pieces. The chicken is precut by the chainheadquarters and sent to the stores in 10-piece bags. Each bagcosts $3. Preparing a batch of 100 pieces of chicken with KC'sspecial coating takes one employee two hours. The current wage rateis $8 per hour. Another cost driver is the cost of putting freshoil into the fryers. New oil, costing $5, is used for eachbatch.
(a) Determine the cost of preparing one batch of 100pieces.
(b) If management projects that it will sell 300 pieces of friedchicken, determine the total batch and unit costs.
(c) If management estimates the sales to be 250 pieces,determine the total costs.
(d) How much will the batch costs increase if the governmentraises the minimum wage to $10 per hour?
(e) If management decided to reduce the number of pieces in abatch to 50, determine the cost of preparing 250 pieces. Assumethat the batch would take half as long to prepare, and managementwants to replace the oil after 50 pieces are cooked.

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SOLUTION A Particulars Amount Cost of chicken bags 310 30 Special coating expense 82 16 Cost of oil 5 Total cost 51 Therefore total cost of preparing one batch of 100 pieces is 51 B See Answer

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In: AccountingKC, a fast-food restaurant, serves fried chicken, fried fish,and French fries. The managers have estimated...KC, a fast-food restaurant, serves fried chicken, fried fish,and French fries. The managers have estimated the costs of a batchof fried chicken for KC's all-you-can-eat Friday Fried Fiesta. Eachbatch must be 100 pieces. The chicken is precut by the chainheadquarters and sent to the stores in 10-piece bags. Each bagcosts $3. Preparing a batch of 100 pieces of chicken with KC'sspecial coating takes one employee two hours. The current wage rateis $8 per hour. Another cost driver is the cost of putting freshoil into the fryers. New oil, costing $5, is used for eachbatch.(a) Determine the cost of preparing one batch of 100pieces.(b) If management projects that it will sell 300 pieces of friedchicken, determine the total batch and unit costs.(c) If management estimates the sales to be 250 pieces,determine the total costs.(d) How much will the batch costs increase if the governmentraises the minimum wage to $10 per hour?(e) If management decided to reduce the number of pieces in abatch to 50, determine the cost of preparing 250 pieces. Assumethat the batch would take half as long to prepare, and managementwants to replace the oil after 50 pieces are cooked.