Unit- and batch-level cost drivers
kc, a fast-food restaurant, serves fried chicken, fried fis...
Business, 24.12.2019 19:31 BreBreDoeCCx
Unit- and batch-level cost drivers
kc, a fast-food restaurant, serves fried chicken, fried fish, and french fries. the managers have estimated the costs of a batch of fried chicken for kc's all-you-can-eat friday fried fiesta. each batch must be 50 pieces. the chicken is precut by the chain headquarters and sent to the stores in 10-piece bags. each bag costs $4. preparing a batch of 50 pieces of chicken with kc's special coating takes one employee two hours. the current wage rate is $9 per hour. another cost driver is the cost of putting fresh oil into the fryers. new oil, costing $6.50, is used for each batch.
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