Ch 4 Graded Homework 7 Problem 4-14 Compute and Use Activity Rates to Determine the costs of Serving Customers (L04-2 LO4-3, L04-4) Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity based costing study. The Intern, in consultation with the owner, dontified the following major activities: Activity Cost Pool Serving party of diners Serving a diner Serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered Book A group of diners who ask to sit at the same table is counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served. 0 Data concerning these activities are shown below: Total cost Total activity Serving a Party 549,700 7,000 parties Serving a Diner 580,00 10,000 diners Serving Drinks $73,100 43.000 drinks Total 5202,800 Prior to the activity based costing study the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $202.800 and that 10,000 diners had been served. Therefore, the average cost per diner was $20.28 $202.800 10,000 diners - $20 28 per diner). Required: 1 Compute the activity rates for each of the three activities 2 According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in total. D. A party of two diners who do not order any drinks c. A lone diner who orders two drinks. 3. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks c. Alone diner who orders two drinks Complete this question by entering your answers in the tabs below. Required 1 Required Required 4 Graded Homework 7. A group of diers who ask to set at the same table is counted as a party. Some costs, such as the costs of deaning linen, are the same whether one person is at a table or the table is full Other costs, such as washing dishes, depend on the number of diners served Data concerning these activities are shown below. Serving Party 549,700 7,000 parties Serving Diner $80,000 10,000 diners Serving Drinks $73, 100 43, drinks Total cost Total activity Total $202, Book Prior to the activity based costing study, the owner knew very little about the costs of the restaurant. She know that the total cost for the month was $202,800 and that 10,000 diners had been served. Therefore, the average cost per diner was $20.28 ($202,800 10,000 diners = $20.28 per diner). Required: 1. Compute the activity rates for each of the three activities 2. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks c. A lone diner who orders two drinks 3. Convert the total costs you computed in part (2) above to costs por diner. In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks. c. A lone diner who orders two drinks. Complete this question by entering your answers in the tabs below. Required Required 2 Required Compute the activity rates for each of the three activities, (Round your answers to 2 decimal places. Serving a Party Serving Diner Serving Drinks Cost per Unit of Activity 7.10 per party $ 8.00 perdier 1.70 per rink Ch 4 Graded Homework 7. 142 A group of diners who ack to the same table is courted as a party. Some COGE, such as the cost of cleaning inon, are the same whether one person is at a table or the table is full other costs, such as washing dishes, depend on the number of diners cerved. Data concerning these activities are shown below. Seni Party Total Total cost 149,00 $80,000 $73, 100 2,800 Total activity 7.000 parties 10,000 diners 41,00 inks Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $202,800 and that 10.000 diners had been served. Therefore, the average cost per diner was $20.28 (5202,800 10,000 diners $20.28 por diner, Required: 1. Compute the activity rates for each of the three activities 2. According to the activity based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks. Alone diner who orders two drinks. 3. Convert the total costs you computed in part (2) above to costs per diner In other words, what is the average cost per diner for serving each of the following parties? a. A party of four diners who order three drinks in total. b. A party of two diners who do not order any drinks cAlone diner who orders two drinks Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Round your intermediate calculations and final answers to 2 decimal places.) Total Aparty of four diners who order three drinks in total Aparty of two diners who do not order any drinks Alone diner who orders two drinks h 4 Graded Homework 7 A group of diners who ask to it at the same table is counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is fil Other costs, such as washing dishes, depend on the number of dinors served Data concerning these activities are shown below. 3 Serving Party 149,700 7,000 parties Total cost Total activity Serving a Diner $80,000 10, diners ring oranks $73,180 43,00 drinks $22,00 book Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant She knew that the total cost for the month was $202,800 and that 10,000 diners had been served. Therefore, the average cost per diner was $20 28 ($202,800 10,000 diners - $20.28 por diner) Required 1 Compute the activity rates for each of the three activities. 2 According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks c. A lone diner who orders two drinks 3. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per diner for cerving each of the following parties? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks c. A lone diner who orders two drinks. Complete this question by entering your answers in the tabs below. Required Required 2 Required Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (Round your intermediate calculations and final answers to 2 cecimal places.) A party of four diners who order three drinks in total Aparty of two diners who do not order any drinks Alone diner who orderswo drinks Average Cost per diner per diner per diner