Vince’s Spaghetti is a family-owned restaurant in Southern California. The corporate office provides 2 kinds of...

Vince’s Spaghetti is a family-owned restaurant in Southern California. The corporate office provides 2 kinds of services (maintenance and personnel) to Vince’s 3 locations (Ontario, Redlands, and Temecula). In a recent accounting period, the direct cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees.

Number of

Square Feet Employees

Support Departments:

Maintenance 1,000 15

Personnel 1,000 8

Operating Departments:

Ontario 5,000 12

Redlands 6,000 18

Temecula 3,000 10

a. If Vince’s uses the direct method, calculate the total support costs allocated to each restaurant location.

b. If Vince’s uses the step-down method with personnel allocated first, calculate the total support costs allocated to each restaurant location.

c. Assume Vince’s uses the reciprocal method to allocate costs between support departments. Calculate the total support department costs allocated to each restaurant location.

Expert Solution

ekkarill92 answered 2 years ago

A Mediterranean restaurant chain with more than 25 restaurants in Southern California is trying to expand...

A Mediterranean restaurant chain with more than 25 restaurants in Southern California is trying to expand its operations. After reading the information presented in this module and other sources, write a two-page paper that outlines a mobile marketing program for this company. What are three mobile marketing strategies that you recommend for this company? What are the bases of your recommendations for reaching out to the largest number of potential customers with a moderate cost? Multichannel, cross-channel, and omnichannel are...

Deep River College is a two-year school in Southern California. Twice a year, the fundraising office...

Deep River College is a two-year school in Southern California. Twice a year, the fundraising office at Deep River mails requests for donations to the alumni. The staff uses a word processing program and a personal information database to create personalized letters. Data on past contributions and other alumni information, however, is stored manually. The dean, Alexandra Ali, recently submitted a systems request asking the college’s IT department to develop a computerized alumni information system. The school does not have...

43. Sidney Southern owned a restaurant which was condemned on November 20, 2018. On January 15,...

43. Sidney Southern owned a restaurant which was condemned on November 20, 2018. On January 15, 2019, he received a condemnation award of $280,000. The adjusted basis of his restaurant was $120,000. He purchased another restaurant on March 17, 2019, for $300,000. a. What is Sidney's lowest recognized gain or loss? What is his basis in the restaurant? b. What would be the answer to (a) if the replacement cost was $240,000? c. What is the last possible date on...

2. Tabulate the difference between family and non-family owned businesses.(30MARKS)

Randy’s, a family-owned restaurant chain operating in Alabama, has grown to the point that expansion throughout...

Randy’s, a family-owned restaurant chain operating in Alabama, has grown to the point that expansion throughout the entire Southeast is feasible. The proposed expansion would require the firm to raise about $18.3 million in new capital. Because Randy’s currently has a debt ratio of 50% and because family members already have all their personal wealth invested in the company, the family would like to sell common stock to the public to raise the $18.3 million. However, the family wants to...

JACK’s Fish House is a family-owned restaurant that specializes in German-style seafood. Data concerning the restaurant’s...

JACK’s Fish House is a family-owned restaurant that specializes in German-style seafood. Data concerning the restaurant’s monthly revenues and costs appear below (q refers to the number of meals served): Formula Revenue $ 16.50q Cost of ingredients $6.25q Wages and salaries $ 10,400 Utilities $800 + $0.20q Rent $2,200 Miscellaneous $600 + $0.80q Prepare the restaurant’s planning budget for April assuming that 1,800 meals are served. Assume that 1,700 meals were actually served in April. Prepare a flexible budget for...

Long range and short range forecasting provides several benefits. If you owned a restaurant what do...

Long range and short range forecasting provides several benefits. If you owned a restaurant what do you think would be most appropriate to forecast for short-term (ie each week) and why did you chose that to forecast? If you owned a restaurant what do you think would be most appropriate to forecast for long-term (ie for the year) and why did you choose this to forecast? Would the above to answers differ if you had a single restaurant or a...

Question 2. Will Southern California ever stop having real estate bubbles? Write 1 paragraph at most

Question 2 Poppy's Seafood Restaurant just completed its 3rd year of operation in southern Florida. Poppy...

Question 2 Poppy's Seafood Restaurant just completed its 3rd year of operation in southern Florida. Poppy wants to be better able to forecast sales by month for up to one year in advance. The second worksheet in the Excel workbook shows sales ($000) for the first 3 years Perform an analysis of the sales data for Poppy's Seafood Restaurant. Include the following: (1) A time series plot. Comment on the underlying pattern in the time series. (2) Develop a regression...

2. Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on...

2. Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 240 Units sold 225 Units in ending inventory 15 Variable costs per unit: Direct materials $ 120 Direct labor...

Question