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Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the trying to better understand costs at the restaurant and has hired a

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Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the trying to better understand costs at the restaurant and has hired a student intern to condact an tryint based costing study. The intern, in consultation with the owner, identified the following major act A group of diners who ask to sit at the same table is counted as a party. Some costs, such as the ce ing dishes, depend on the number of diners served. Data concerning these activities are shown below: She knew that the totalty-based costing study, the owner knew very little about the costs of the restaur the average cost per diner was $9.80 ( $313,60032,000 diners =$9.80 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 followin parties of diners? b. A party of two diners who do not order anyl drinks. 3. Convert dhe totaner who orders two drinks. average cost per diner for computed in part (2) above to costs per diner. In other words, what is the a. A party of four diners who erderh of the following parties? b. A party of two diners who do not order drinks in total. c. A lone diner who orders two drinks. 4. Why do the costs per diner for the three average cost of $9.80 per diner? parties differ from each other and from the ovenill Marine, Inc., manufactures a product that is aventional Product Costs LO 42,LO43,LO44

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