Classifying costs; direct costs: restaurant Indicate whether each of the following costs is a direct cost...

Classifying costs; direct costs: restaurant Indicate whether each of the following costs is a direct cost for an individual franchise of a gourmet pizza chain, providing reasons to explain your answer:

(a) cost of food served
(b) pizza chef’s salary and labour on-costs
(c) costs allocated to each franchise for head office design of the standard pizza menu
(d) shared costs for franchise marketing, which is managed by the franchise head office
(e) depreciation on the wood-fired oven
(f) cost of advertising initiated by the individual franchise to promote its availability for functions and events.

Expert Solution

(a) cost of food served- direct cost as the object of restaurant is to provide food. So the cost incurred for making food which includes all the ingredients will be direct cost.

(b) pizza chef's salary and labour on cost- direct cost The salaries and labour given are for preparation and serving of food, so it is a direct cost

(C) costs allocated to each franchise for head office design of the standard pizza menu- indirect costs

Direct costs in a restaurant are the cost of served food which includes all the ingredients and all the labour to make and serve food. So cost allocated for the design of pizza menu will be an indirect cost.

(D) shared costs for franchise marketing, which is managed by the franchise head office - indirect costs

Direct costs in a restaurant are the cost of served food which includes all the ingredients and all the labour to make and serve food. so the costs incurred for franchise marketing will be an indirect costs

(e) Depreciation on wood fired oven- direct cost

Pizzas served in restaurant are made using the wood fired oven. So for making pizza, oven is a must. The depreciation expense on such oven will be treated as a direct cost. If such oven is not a must for making pizza, the depreciation expense will be an indirect cost.

(f) cost of advertising initiated by the individual franchise to promote its availability for functions and events- indirect costs

Direct costs in a restaurant are the cost of served food which includes all the ingredients and all the labour to make and serve food. so the costs incurred for advertising to promote its availability for functions and events are indirect costs.

ekkarill92 answered 1 year ago

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing...

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Prime Pizza is famous for making Margherita pizzas and delivers pizzas to the suburb...

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing...

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead, or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Mama’s Pizza is famous for making Margherita pizzas and delivers pizzas to the suburb on the...

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct...

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct materials cost, direct labor cost, factory overhead cost, or period cost. Plant manager’s salary _______________________________ Office administrative assistant’s salary _____________________________ Depreciation on factory equipment ________________________________ Rent on office building _______________________________ Varieties of wood ______________________________ Varnish for costing cabinets _______________________________ Utilities cost on the factory _______________________________ Cabinet assembly worker’s salary ________________________________ Advertising costs ________________________________ Screws and glue used in assembly process ____________________________

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Buddy’s Pizza is famous for making Margherita pizzas and delivers pizzas to...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Prime Pizza is famous for making Margherita pizzas and delivers pizzas to...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Buddy’s Pizza is famous for making Margherita pizzas and delivers pizzas to...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead, or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Vinny’s Pizza is famous for making Margherita pizzas and delivers pizzas to...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead, or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Vinny’s Pizza is famous for making Margherita pizzas and delivers pizzas to...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead, or period cost. (1 Mark each) Cost of grapes purchased by a winery Depreciation on pizza ovens of a pizza restaurant Salary of a plant manager in a computer production facility Depreciation of computers used in a sales department Wages of drill-press operators in a manufacturing plant Part B Vinny’s Pizza is famous for making Margherita pizzas and delivers pizzas to...

Determine whether each of the following costs should be classified as direct materials, direct labor, or...

Determine whether each of the following costs should be classified as direct materials, direct labor, or manufacturing overhead. (a) Direct MaterialsDirect LaborManufacturing Overhead Frames and tires used in manufacturing bicycles. (b) Direct MaterialsDirect LaborManufacturing Overhead Wages paid to production workers. (c) Direct MaterialsDirect LaborManufacturing Overhead Insurance on factory equipment and machinery. (d) Direct MaterialsDirect LaborManufacturing Overhead Depreciation on factory equipment.

Question

Classifying costs; direct costs: restaurant Indicate whether each of the following costs is a direct cost...

Solutions

Expert Solution

Related Solutions

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing...

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing...

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Part A (5 Marks) Indicate whether each of the following costs would be classified as direct...

Determine whether each of the following costs should be classified as direct materials, direct labor, or...