Compute the cost of a regular and special meal using the


1. Compute the cost of a regular and special meal using the new overhead pools and cost drivers. What explains the differences between these costs and the ones in Exhibit 1?

2. What is your assessment of the overhead pools and cost drivers that Ms. Canard has chosen? How, if at all, might they be improved?

3. Assuming the overhead pools and cost drivers give a better indication of actual costs, what should Mr. Larson do with this information? In answering this question, you should address the questions he raises at the end of the case.

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Accounting Basics: Compute the cost of a regular and special meal using the
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