Exercise 9-36 Activity-Based Costing in a Nonmanufacturing Environment (LO 9-4, 5 Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered pa of parties, an afternoon picnic and an evening formal dinner. The breakdown of the costs follows: Formal Dinner Afternoon Picnic Activities (and cost drivers) $100 per party $125 per party S 75 per party plus $ 20 per guest $400 per party 75 per server per party s 30 per guest $ 100 per party $ 75 per party Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) 50 per party plus S 10 per guest $ 200 per party 50 per server per party $ 20 per guest Per party costs do not vary with the number of guests Required: a. Compute the cost of a 20-guest afternoon picnic. noon picnic b. Compute the cost of a 20-guest evening formal dinner. vening formal din c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs? (Round your answers t Charging Amount per guest Afternoon picnic Formal dinner per guest