What would larrys overhead cost of serving a party


Larry's Lakeside Restaurant is an upscale, popular eatery located on the waterfront. Larry is implementing an ABC system for the upcoming year and has identified the following cost pools and activity measures to better understand his overhead costs.

  • Activity Cost Pool Activity Measure Total Expected Cost Total Expected Activity
  • Serving a party of diners # of parties served $40,000 5,000 parties
  • Serving a diner # of diners served $180,000 15,000 diners
  • Serving a drink # of drinks served $8,000 8,000 drinks

What would Larry's overhead cost of serving a party of 4 diners who order 6 drinks total?

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Accounting Basics: What would larrys overhead cost of serving a party
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