Chapter 7 Homework (No Hints) 1 10 points eBook Ask Mc Print References Help Save & Exit Submit Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The restaurant's owner wants to better understand his costs and hired a student intern to conduct an activity-based costing study. The intern identified three activities, completed the first- stage cost allocations and gathered the activity measure data shown below. Saved Activity Cost Pool Serving a party of diners Serving a diner Serving drinks The above costs exclude organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Activity Measure Number of parties served Number of diners served Number of drinks ordered Prior to the activity-based costing study, the owner knew very little about the restaurant costs. She only knew the total cost for the month (including organization-sustaining costs) was $180,000 and 12,000 diners had been served. Therefore, the average cost per diner was $15. a. A party of three diners who order five drinks in total. b. A party of two diners who do not order any drinks. Required: 1 and 2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of diners? Total Cost $ 21,600 $ 109,120 $38,380 Note: Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places. Total Cost # Total Activity 6,000 parties 12,400 diners 10,100 drinks www Average Cost per diner per diner

Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The restaurant's owner wants to better understand his costs and hired a student intern to conduct an activity-based costing study. The intern identfied three activities, completed the first. stoge cost allocations and gathered the activity measure data shown below. The above costs exclude organization-sustaining costs such os rent, property taxes, and top-manogement saiaries Some costs, such as the cost of cleaning the linens that cover the restourant's tables, vary with the number of parties served Other costs, such es washing plates and glasses, depend on the number of cliners served of the number of drinkis served Prior to the activity-bosed costing study, the owner knew very little obout the restaurant costs she only knew the total cost for the month (including organization-sustaining costs) was $180,000 and 12.000 diners had been served Therefore, the overage cost per diner was $15 : Required: 1 and 2 . According to the sctivity-based costing system, what is the total cost and average cost per diner for serving each of the foliowing parties of diners? Note: Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places