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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

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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, identified the folowing major activites Activity Cost PoolActivity Measureli Serving a party of diners Serving a diner Serving drinks Number of parties served Number of diners served Number of drinks ordered 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, depends on the number of diners served or the number of drinks served Data conceming these activiies are shown below Serving a PartyServing a Dinner Serving DrinksTotal Total cost Total activity $19,000 $112,000 $91,800 $222.800 5,000 parties 20,000 diners 51,000 drinks 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 $222,800 and that 20,000 diners had been served. Therefore, the average cost per diner was $11.14 (5222 800-20,000 diners $11.14 per diner Required: 1. Compute the activity rates for each of the three activities. (Round your answers to 2 decimal places.) Serving a Party Serving a Diner Serving Drinks per party per diner per drink 2. to the actvity-based costing system, what is the total cost of serving each of the tollowing parses of diners? (Do not round intermediate calculations. Round your final answers to 2 decimal places) a. A party of four diners who order three drinks in total b. A party of two diners who do not onder any drinks c. A party of one diner who arders two drinks Party of four diners who order three drinks Party of two diners who order no drinks Party of one diner who orders two dinks 3 Convert the total costs you computed in part (1) above to costs per diner. I other words, what is the average cost per diner for serving each of the following parses? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 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 party of one diner who orders two drinks Party of four diners who order Pree drinks Party of two diners who order Party of one dner who orders two drinks no drinks

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