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			Formal Dinner
Advertising (parties)	$	111	per party	$	111	per party
Planning (parties)	$	72	per party	$	104	per party
Renting equipment	$	56	per party plus	$	80	per party plus
(parties, guests)	$	12	per guest	$	20	per guest
Obtaining insurance (parties)	$	225	per party	$	375	per party
Serving (parties, servers)	$	55	per server per party	$	74	per server per party
Preparing food (guests)	$	24	per guest	$	27	per guest

Per party costs do not vary with the number of guests.

Compute the cost of a 20-guest afternoon picnic.

(b)	Compute the cost of a 20-guest evening formal dinner How much should Cathy charge for each guest for each type of party if she wants to cover her costs? Afternoon picnic: per guest formal dinner: per guest