This document summarizes an activity-based costing analysis for a restaurant. It lists 4 activity cost pools: serving parties of diners, serving individual diners, serving drinks, and organization-sustaining activities. It provides the total monthly costs, total activities, and rates per activity measure for each cost pool. An example calculation is also provided to demonstrate how to calculate the total cost for serving different scenarios.
This document summarizes an activity-based costing analysis for a restaurant. It lists 4 activity cost pools: serving parties of diners, serving individual diners, serving drinks, and organization-sustaining activities. It provides the total monthly costs, total activities, and rates per activity measure for each cost pool. An example calculation is also provided to demonstrate how to calculate the total cost for serving different scenarios.
This document summarizes an activity-based costing analysis for a restaurant. It lists 4 activity cost pools: serving parties of diners, serving individual diners, serving drinks, and organization-sustaining activities. It provides the total monthly costs, total activities, and rates per activity measure for each cost pool. An example calculation is also provided to demonstrate how to calculate the total cost for serving different scenarios.
This document summarizes an activity-based costing analysis for a restaurant. It lists 4 activity cost pools: serving parties of diners, serving individual diners, serving drinks, and organization-sustaining activities. It provides the total monthly costs, total activities, and rates per activity measure for each cost pool. An example calculation is also provided to demonstrate how to calculate the total cost for serving different scenarios.
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Activity Cost Pool (Activity Measure)
Customer deliveries (Number of deliveries)
Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total selling and administrative expenses
Activity Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked
1.d Total Revnues Less COGS Overhead Costs Allocated Customer Margin
ine items 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 Organization-Sustaining (Rent, Property Taxes, Top-Management Salaries)
Total Cost for the Month $ 240,000.00
# of Dinners Served for the Month 15000 Average Cost per diners $ 16.00
Per party $ 5.50 a. A party of f 4 diners who order 3 drinks in total $ 5.50 b. A party of 2 diners who do not order any drinks $ 5.50 c. A party of 1 diner who orders 2 drinks $ 5.50 Total Cost Total Activity Rate $ 33,000.00 6000.00 parties $ 5.50 per party $ 138,000.00 15000.00 diners $ 9.20 per diner $ 24,000.00 10000.00 drinks $ 2.40 per drink
per diner sold
Answer # Parties Per drink # drinks Per diner # diners Total Cost # of diners per party $ 2.40 per drink $ 9.20 per diner 1 $ 7.20 3 $ 36.80 4 $ 49.50 4 1 $ - 0 $ 18.40 2 $ 23.90 2 1 $ 4.80 2 $ 9.20 1 $ 19.50 1 Answer Average Cost $ 12.375 per diner $ 11.950 per diner $ 19.500 per diner Teller wages 160000 Assistant branch manager salary 75000 Branch manager salary 80000 Total 315000
Distribution of Resource Consumption Across Activities
Total Activity at the Westfield Activity Branch Opening accounts 500 new accounts opened Processing deposits and withdrawals 100000 deposits and withdrawals processed Processing other customer transactions 5000 other customer transactions processed
First stage allocation
Distribution of Resource Consumption Across Activities
Processing Deposits Opening Accounts and Withdrawals Teller wages 8000 104000 Assistant branch manager salary 11250 3750 Branch manager salary 4000 0 Total 23250 107750 n Across Activities Processing Other Customer Other Transactions Activities Totals 20% 10% 100% 30% 50% 100% 10% 85% 100%
withdrawals processed mer transactions processed
n Across Activities Processing Other Customer Other Transactions Activities Totals 32000 16000 160000 22500 37500 75000 8000 68000 80000 62500 121500 315000 Teller wages 160000 Assistant branch manager salary 75000 Branch manager salary 80000 Total 315000
Distribution of Resource Consumption Across Activities
Total Activity at the Westfield Activity Branch Opening accounts 500 new accounts opened Processing deposits and withdrawals 100000 deposits and withdrawals processed Processing other customer transactions 5000 other customer transactions processed
First stage allocation
Distribution of Resource Consumption Across Activities
Activity cost pool Activity rate Opening accounts (19840/240) 46.50 per account opened Processing deposits and withdrawals (111880/48000) 1.08 per deposit and withdrawal Processing other customer transaction (62640/1150) 12.50 per other customer transaction Across Activities
Processing Other Customer Transactions Other Activities Totals 20% 10% 100% 30% 50% 100% 10% 85% 100%
accounts opened sits and withdrawals processed r customer transactions processed
Across Activities
Processing Other Customer Transactions Other Activities Totals 32000 16000 160000 22500 37500 75000 8000 68000 80000 62500 121500 315000
ccount opened eposit and withdrawal ther customer transaction Activity Cost Pool Activity Measure Order Size No of Direct Labor Hour Customer Order No of customer order Product testing No. Of testing hours Selling No of sales calls
Direct Labour-hour 200
Hours of Product Testing 4 Sales calls 2
Activity Cost Pool ABC Cost
Order Size (DLH * rate) 3370.00 Customer Order (cust order * rate) 320.00 Product testing (test hours * rate) 356.00 Selling (sales calls * rates) 2180.00 Total overhead cost 6226.00 Activity Rate 16.85 per Direct Labor-Hur 320.00 per customer order 89.00 per testing hour 1,090.00 per sales call Manufacturing Overhead cost Units Product Y $ 684,000.00 14000
Activity Cost Pool Activity measure
Machining Machine-hours Machine setups No of setups Product design No of products General factory DLH
Activity Measures Product Y
Machine-hours 7000 No of setups 50 No of products 1 DLH 8000
Product Z 33.3% Activity Cost Pool Activity Measure Estimated Overhead Cost Machine setups No of setups 72000 Special processing Machine-hours 200000 General factory Organization-sustaining 816000
Hubs Sprockets Direct Labour-hour per unit $ 0.80 $ 0.40 Annual production Units 10000 40000
Hubs Sprockets Direct Materials per unit $ 32.00 $ 18.00 Direct Labour $ 12.00 $ 6.00 Overhead $ 21.80 $ 1.35 Unit cost $ 65.80 $ 25.35
Directo Labor wage rate $ 15.00 per hour
Hubs requires special equipment and are more complex than Sprockets
Activity Rate Machine setups 180 Special processing 40
Assign overheads costs to product ( Hubs Sprockets
Machine setups $ 18,000.00 $ 54,000.00 Special processing $ 200,000.00 $ - $ 218,000.00 $ 54,000.00 Activity Hubs Sprockets Total 100 300 400 5000 0 5000 NA NA NA
assign overhead cost each alloc base, each product /units produced Activity Cost Pool Activity Measure Total Activity for the Year Supporting Direct Labor N. of DLH 20000 Order Processing N. of customer orders 400 Customer support N. of customers 200 Other Organization-sustaining NA
Distribution of Resource Consumption Across Activities
Supporting Direct Labor Order Processing Wages and salaries 40% 30% Other overhead costs 30% 10%
Overhead Costs Wages and salaries $ 300,000.00 Other overhead costs $ 100,000.00 Total Overhead Costs $ 400,000.00
Data Concerning the Shenzhen Enterprises Order
Units ordered 10 units DLH 2 DLHs per unit Selling price $ 300.00 per unit Direct Materials $ 180.00 per unit Direct Labor $ 50.00 per unit
Distribution of Resource Consumption Across Activities
Direct Labor Order Supporting Direct Labor Order Processing Wages and salaries $ 120,000.00 $ 90,000.00 Other overhead costs $ 30,000.00 $ 10,000.00 Total Overhead Costs $ 150,000.00 $ 100,000.00
Activity Rate Supporting Direct Labor $ 7.50 per DLH Order Processing $ 250.00 per order Customer support $ 400.00 per customer
Activity Cost Pool ABC Cost
Supporting Direct Labor $ 150.00 esses 3 são o overhead costs Order Processing $ 250.00 Customer support $ 400.00 Total Overhead Costs $ 800.00
Customer Margin ABC Analysis
Sales (10 units * selling price per unit) $ 3,000.00 Costs Direct Material (10 units * DM) $ 1,800.00 Direct Labor (10 units * DL) $ 500.00 Supporting Direct Labor Overhead $ 150.00 Order processing overhead $ 250.00 Customer Support overhead $ 400.00 Total Costs $ 3,100.00 Customer Margin $ -100.00 tal Activity for the Year DHLs orders customers
n Across Activities Customer support Other Total 20% 10% 100% 20% 40% 100%
n Across Activities Customer Customer support Other Totals $ 60,000.00 $ 30,000.00 $ 300,000.00 $ 20,000.00 $ 40,000.00 $ 100,000.00 $ 80,000.00 $ 70,000.00 $ 400,000.00
