B. G. Drive-In is a fast-food restaurant that sells burgers and hot dogs in a 1950s environment.

B. G. Drive-In is a fast-food restaurant that sells burgers and hot dogs in a 1950s      environment.  The fixed operating cost of the company is $20,000 per month. The owner     wants all costs allocated to either the sale of burgers or hot dogs. Other items, mostly drinks          and fries, are sold in equal proportions on a per order basis. The following information is    provided for the operations of the company: 

                                     Burgers          Hot Dogs          Ratio

      Budget Sales             3,000               2,000           

      Actual Sales              2,500               1,500             

Required:

a.   Compute the cost assigned to each food item if budgeted sales are used as the allocation base.

b.   Compute the cost assigned to each food item if actual sales is used as the base.