In Fribney's Restaurant, actual cost for September was $49,000. Sales for September were $140,000. Standard cost percent was 5.0% lower than actual cost percent. Standard cost percent was:

Question

Quizplus · Accepted Answer

The actual cost percent is calculated as (Actual Cost / Sales) * 100 = ($49,000 / $140,000) * 100 = 35%. The standard cost percent is 5.0% lower than the actual cost percent, so it is 35% - 5% = 30%.

In Fribney's Restaurant, Actual Cost for September Was $49,000