Cathy, the manager of Cathy's Catering, Inc., uses activity-based costin the costs of her catered parties. Each party is limited to 20 guests and i people to serve and clean up. Cathy offers two types of parties-an afte and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Afternoon Picnic $ 111 per party $ 66 per party $ 57 per party plus $13 per guest $170 per party $ 52 per server per party $ 25 per guest $111 $ 148 $ 70 $ 390 $ 76 $ 33 st drivers ) es ) (parties, guests) e (parties) servers) ests) Afternoon Picnic $ 111 per party $ 66 per party $ 57 per party plus $13 per guest $170 per party $ 52 per server per party $ 25 per guest Formal Dinner $ 111 per party $ 148 per party $ 70 per party plus $21 pe $ 390 per party $ 76 per server per party $ 33 per guest Requirea: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each typ she wants to cover her costs? - sy w a y wa N diluidcturing environment (LU 9-4, 5) Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Afternoon Picnic Advertising (parties) $111 per party Planning (parties) $ 66 per party Renting equipment (parties, guests) $ 57 per party plus $13 per guest Obtaining insurance (parties) $170 per party Serving (parties, servers) $ 52 per server per party Preparing food (guests) $ 25 per guest Formal Dinner $111 per party $148 per party $ 70 per party plus $21 per guest $390 per party $ 76 per server per party $ 33 per guest Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic b. Compute the cost of a 20-guest evening formal dinner c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs