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Abc Project

In: Business and Management

Submitted By CharlesSqt
Words 1063
Pages 5
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 1

| April 2014 | |
|Total Revenue |$ 91,460 |
|CGS - Food |31,405 |
|CGS - Beverage |1,220 |
|Supplies |2,756 |
|Accounting |250 |
|Transportation |186 |
|Security |33 |
|Bank charges |49 |
|Equipment rental |1,000 |
|Entertainment |335 |
|Insurance |312 |
|License fees |500 |
|Telephone |143 |
|Linen & Laundry |677 |
|Office supplies |408…...

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