Abc Project

1063 Words Feb 25th, 2016 5 Pages
Project Fall 2015

The application of Activity-Based Costing in a Casual Service Restaurant.

The restaurant is a franchise located in the southwestern USA. It is a casual service restaurant and has about 50 seats.
The study will calculate Activity-Based Costs for major items from the restaurant menu as selected by management. Students should incorporate the following steps:

ABC Stage One

1. Decompose the general ledger (use the provided income statements for April 2014 – Table 1) into major cost pools following the model below (Figure 1). Please note that the payroll for the FOH was $12,521.06 and the payroll for the BOH was $17,671.94 for April, 2014.

Figure 1

[pic]

Table
…show more content…
osts |30,193 |
|Utilities |1,456 |
|Rent and Maintenance |2,000 |

Table 2

|MENU ITEM |# |MENU |ITEM |ITEM |
|NAME |SOLD |MIX % |FOOD |PRICE |
| |(MM) |(MM%) |COST | |
|Chopped Salad |229 |5.88% |2.24 |8.95 |
|Chopped Salad w Chicken |200 |5.13% |3.12 |11.70 |
|Chopped Salad w Tuna |29 |0.74% |3.12 |11.70 |
|Arugula Pear Salad |100 |2.57% |2.24 |8.75 |
|Arugula w Chicken |150 |3.85% |3.12 |11.50 |
|Arugula w Tuna |56 |1.44% |3.12 |11.50 |
|Cobb Salad |589 |15.12% |2.69 |10.75 |
| |300 |7.70% |3.18 |9.95 |
|Chicken…

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