Bradbo owned two acjoining restaurants, the Pork. Palace and the Chicken Hut. Each restaurant was...
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Bradbo owned two acjoining restaurants, the Pork. Palace and the Chicken Hut. Each restaurant was treated as a profit center for performance evaluation purposes. Although the restaurants had separate kitchens, they shared a central baking focility. The principal costs of the baking area Included materials, supplies, labor, and depreciation and maintenance on the equipment. Bradbo allocated the monthly costs of the baking facility to the two restaurants based on the number of tables served in each restaurant during the month using dual allocation and equal sharing of fixed costs. In April, the costs were $43,000, of wtich $22.500 were fixed. The Pork. Paiace served 4.400 tables, while the Chicken Hut served 3,600 tables. The amount of joint cost that should have been allocated to the Pork Palace in April is calculated to be: Multiple Choice 511,500 $20,500 The emount of joint cost that should have been ollocated to the Pork. Palace in Aprif is calcutoted fo be: Multigle Chotce \$t1500 320500. 522525 325.000 53.600
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