Questions
Problem 4-14 Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO4-2, LO4-3,...

Problem 4-14 Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO4-2, LO4-3, LO4-4]

Gino’s Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified the following major activities:

Activity Cost Pool Activity Measure
Serving a party of diners Number of parties served
Serving a diner Number of diners served
Serving drinks Number of drinks ordered

A group of diners who ask to sit at the same table is 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.

  

Data concerning these activities are shown below:

   

Serving a Party Serving a Diner Serving Drinks Total
Total cost $32,800 $211,200 $69,600 $313,600
Total activity 8,000 parties 32,000 diners 58,000 drinks

Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $313,600 and that 32,000 diners had been served. Therefore, the average cost per diner was $9.80 ($313,600 ÷ 32,000 diners = $9.80 per diner).

Required:

1. Compute the activity rates for each of the three activities.

2. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners?

a. A party of four diners who order three drinks in total.

b. A party of two diners who do not order any drinks.

c. A lone diner who orders two drinks.

3. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties?

a. A party of four diners who order three drinks in total.

b. A party of two diners who do not order any drinks.

c. A lone diner who orders two drinks.

In: Accounting

Create a PivotTable to combile the following information: 1. The total revenue for each salesperson 2....

Create a PivotTable to combile the following information:

1. The total revenue for each salesperson

2. For each salesperson, the total revenue by product

3. Total revenue generated by each salesperson broken down by location

Please provide excel formulas and solutions

https://drive.google.com/open?id=16kL_VoQlIsOCaioggkjnGBFR_GvCrSGM

In: Operations Management

Case Study: Greenly Insurance Company Greenly has worked hard over the past year and has increased...

Case Study: Greenly Insurance Company

Greenly has worked hard over the past year and has increased their marketing efforts to reach certain “untapped” demographics. Greenly has determined that it has been able to retain its Generation Y customers, who have established their own households. Greenly’s new survey of former customers has revealed that it is losing its Baby Boomer customers who like to shop for coverage based on price. One of the reasons most often cited for leaving is the inability to obtain quotes through Greenly’s Web site.

Create your own assumptions using the information presented to evaluate Greenly’s and recommend an action plan / strategies for growth.

In: Operations Management

Please comment on Alibaba current Revenue, Profit Margin, Earning ,EBITDA and Price/Earning ratio affect the profitability...

Please comment on Alibaba current Revenue, Profit Margin, Earning ,EBITDA and Price/Earning ratio affect the profitability of the company

In: Finance

Case study 6.2: Converting to LPG – is it worth it. Green fuel runs out of...

Case study 6.2: Converting to LPG – is it worth it.
Green fuel runs out of gas5
The cost of converting a car to run on liquefied petroleum gas (LPG) is about £1,500 in the UK, towards which a government grant would contribute about £700. From September 1 2004, LPG will on average cost 40.7p per litre, compared with 79.1p for ordinary unleaded petrol. However, LPG cars usually have slightly worse fuel consumption, losing about 13% in terms of miles per gallon.
Questions
Fast-Trak company owns a fleet of 20 cars, which are bought new and are used for 30,000 miles over two years before being sold off. The cars average 30 miles
to the gallon (imperial) on petrol. The conversion to LPG does not affect the price in the secondhand market.
1 Calculate the profit contribution per hundred miles of LPG compared with unleaded petrol, for one of Fast-Trak’s cars.
2 Calculate the break-even mileage for the cars with the LPG conversion.
3 Calculate the effect on the profit of Fast-Trak of converting to LPG.
4 The government wants to encourage the use of LPG to protect the environment by reducing the break-even mileage to 10,000 miles; how large a grant should it offer for the LPG conversion?

In: Economics

On December 31, 2016, Ditka Inc. had Retained Earnings of $279,800 before its closing entries were...

On December 31, 2016, Ditka Inc. had Retained Earnings of $279,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $180,100 and interest revenue of $87,300. The company used supplies in the amount of $93,900, advertising expenses were $17,600, salaries and wages totaled $20,100, and income tax expense was calculated as $16,100. During the year, the company declared and paid dividends of $7,200.
Required:
a. Prepare the closing entries dated December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b.

Prepare T-account for the Retained Earnings account.

In: Accounting

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal...

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $200,000 a year. The firms that employ designers of normal ability each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacob's talent, this company collects $900,000 in revenue a year.

a. How much will Jacobs earn? What proportion of his annual salary will be economic rent?

b. Will the advertising company for which Jacobs works be able to earn an economic profit?

PLSSSS explain each step, so lost!

In: Economics

Compute the correlations for the “Hot Growth Companies” in Date 1 for each pair of variables...

Compute the correlations for the “Hot Growth Companies” in Date 1 for each pair of variables rank, P/E ratio, and return, using the first 50 and second 50 values separately. Compare these results with those given in Example 2.4. Explain the differences.

Date 1

Rank Return on Capital P-E Ratio
1 51.5 37
2 68.5 53
3 35.3 71
4 28.7 21
5 28.2 26
6 29.8 14
7 24.4 36
8 27.4 38
9 32.3 24
10 35.1 37
11 32.5 26
12 15.9 36
13 18.5 47
14 15 22
15 22.3 13
16 17.2 26
17 21.2 24
18 13.5 19
19 30.3 48
20 21.2 27
21 14.1 50
22 26.7 55
23 16.1 23
24 20.3 33
25 21.2 15
26 18.3 14
27 30.6 22
28 16.6 34
29 15.7 7
30 13.4 42
31 28.2 18
32 11.2 45
33 17.3 26
34 19.9 27
35 19.6 17
36 16.7 11
37 13.1 41
38 17.8 43
39 17.7 28
40 14.5 52
41 15.2 22
42 8.9
43 14.7 31
44 12 19
45 10.9 19
46 14.8 22
47 15.9 11
48 12.9 38
49 21.8 21
50 12.1 30
51 8.5 25
52 18.6 25
53 12.1 22
54 15.1 21
55 17.9 15
56 9 25
57 11 29
58 18.1 24
59 6.3 30
60 15.1 23
61 15.9 22
62 15.8 19
63 18.9 23
64 12.7 18
65 15.1 28
66 8.7 29
67 15.1 25
68 15.5 14
69 12.6 17
70 7.6 24
71 7.5 43
72 13.4 28
73 7.4 14
74 15.6 26
75 11.5 25
76 10 31
77 8.6 15
78 14 31
79 12.9 20
80 10.4 16
81 12.2 19
82 9.3 32
83 12.6 21
84 12.5 26
85 13 39
86 15.8 32
87 14.4 28
88 10.6 16
89 12.2 31
90 11.4 13
91 11.7 6
92 12.3 37
93 12.3 29
94 14.5 20
95 13 28
96 14 23
97 10.6 30
98 11 21
99 10.4 31
100 11.1 29

Example 2.4

Rank Return on Capital P-E Ratio
1 51.5 37 Rank Return on Capital P-E Ratio
2 68.5 53 Rank 1
3 35.3 71 Return on Capital -0.647 1
4 28.7 21 P-E Ratio -0.267 0.306 1
5 28.2 26
6 29.8 14
7 24.4 36 This file shows the Excel verison of the example 2.4 in the book.
8 27.4 38
9 32.3 24
10 35.1 37
11 32.5 26
12 15.9 36
13 18.5 47
14 15 22
15 22.3 13
16 17.2 26
17 21.2 24
18 13.5 19
19 30.3 48
20 21.2 27
21 14.1 50
22 26.7 55
23 16.1 23
24 20.3 33
25 21.2 15
26 18.3 14
27 30.6 22
28 16.6 34
29 15.7 7
30 13.4 42
31 28.2 18
32 11.2 45
33 17.3 26
34 19.9 27
35 19.6 17
36 16.7 11
37 13.1 41
38 17.8 43
39 17.7 28
40 14.5 52
41 15.2 22
42 8.9
43 14.7 31
44 12 19
45 10.9 19
46 14.8 22
47 15.9 11
48 12.9 38
49 21.8 21
50 12.1 30
51 8.5 25
52 18.6 25
53 12.1 22
54 15.1 21
55 17.9 15
56 9 25
57 11 29
58 18.1 24
59 6.3 30
60 15.1 23
61 15.9 22
62 15.8 19
63 18.9 23
64 12.7 18
65 15.1 28
66 8.7 29
67 15.1 25
68 15.5 14
69 12.6 17
70 7.6 24
71 7.5 43
72 13.4 28
73 7.4 14
74 15.6 26
75 11.5 25
76 10 31
77 8.6 15
78 14 31
79 12.9 20
80 10.4 16
81 12.2 19
82 9.3 32
83 12.6 21
84 12.5 26
85 13 39
86 15.8 32
87 14.4 28
88 10.6 16
89 12.2 31
90 11.4 13
91 11.7 6
92 12.3 37
93 12.3 29
94 14.5 20
95 13 28
96 14 23
97 10.6 30
98 11 21
99 10.4 31
100 11.1 29

In: Statistics and Probability

A. Rio Group LLC manufactures two types of widgets: Widget A and Widget B. The company...

A. Rio Group LLC manufactures two types of widgets: Widget A and Widget B. The
company has been allocating its overhead to each product using traditional costing and direct
labor hours as the cost driver. Using the same expenses and information, Rio Group LLC has
asked you to allocate its overhead to each product using activity-based costing. What are the
necessary steps you will take to implement the Activity-based costing system in his
company?
B. Reliance Chemicals Inc had targeted revenue of $ 95000 from their chemical segment for
the year ended 2018. But at the end of the year, they achieved revenue of $ 93000. There is a
decrease of $2000 in their revenue. The fluid division have not achieved the targeted revenue
due to which their chemical division target falls short by $2000 for which Manager of a
Revenue center will be responsible. You have been appointed a cost accounting expert. What
are the necessary steps you will take to implement the responsibility accounting system
in chemical company? (10 Marks
C) Casing (X) manufactures Iphone cases for associated enterprises. There are many
companies around that manufacture Iphone cases, including independent enterprise
Accessories (B). B and X manufacture similar Iphone cases. Now say that X is asked by
associated enterprise Y to manufacture 10,000 Iphone cases. The Fixed cost is Rs. 100 perpiece and the variable cost Rs. 100 per piece also. The mark up is 25 % on cost price. The
company wants to use Cost plus markup method of transfer pricing. A. What is the transfer
price per case. B. What is the total profit earned by X. C. What will be transfer price if the
markup increased to 30%.

In: Accounting

1/ On February 15, Jewel Company buys 7,100 shares of Marcelo Corp. common stock at $28.54...

1/ On February 15, Jewel Company buys 7,100 shares of Marcelo Corp. common stock at $28.54 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.16 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.31 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:

Multiple Choice

Debit Cash $7,511; credit Dividend Revenue $7,511.

Debit Cash $8,236; credit Dividend Revenue $8,236.

Debit Cash $8,236; credit Interest Revenue $8,236.

Debit Cash $7,511; credit Interest Revenue $7,511.

Debit Cash $8,236; credit Gain on Sale of Investments $8,236.

2/ On January 4, Year 1, Barber Company purchased 5,500 shares of Convell Company for $64,500 plus a broker's fee of $1,100. Convell Company has a total of 27,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $77,000 and $72,000 for Year 1 and Year 2, respectively. What is the book value of Barber's investment in Convell at the end of Year 2?

Multiple Choice

$65,600.

$86,050.

$56,250.

$95,400.

$94,400.

In: Accounting