Abc Project Essay

1076 Words Mar 9th, 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 1
…show more content…
|259 |6.65% |3.18 |9.95 |
|BBQ Chicken Wrap | | | | |
| |123 |3.16% |3.08 |9.95 |
|Chicken Tender Wrap | | | | |
| |269 |6.90% |1.75 |7.95 |
|Cheeseburger | | | | |
|Chicken Mushroom Burger |96 |2.46% |2.69 |9.95 |
|Grilled Garden Burger |202 |5.18% |2.07 |7.95 |
|Smoked Turkey & Avocado |521 |13.37% |2.93 |9.75 |
|440 Sandwich |310 |7.96% |3.36 |10.50 |
|Turkey Club |163 |4.18% |2.85 |10.95 |
|Signature Pasta |105 |2.70% |2.99 |11.50 |
|Angel Hair Bolognese |63 |1.62% |2.85 |10.95 |
|Traditional Tomato

Related Documents