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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 following major activities: Activity Cost Pool Activity Measure Serving a party of dimers Number of parties served Serving a diner Number of diners served Serving drinks Number of drinks ordered 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. Data concerning these activities are shown below: Serving a Party Serving a Diner Serving Drinks Total Total cost 5 55,200 5 60,000 5 64,500 $ 179,700 Total activity H.000 parties 10,000 diners 43,000 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 $179,700 and that 10,000 diners had been served. Therefore, the average cost per diner was $17.97 [$179,700 + 10,000 diners = $17.97 per diner]. Required: 1. Compute the activity rates for each ofthe three activities. 2. According to the activity-based costing system. what is the total cost ofserving each of the following parties of diners? a. A party of four diners who order three drinks in total. b. A party oftwo 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 dinerfor serving each of the following parties? a. A party of four diners who order three drinks in total. b. A party oftwo 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 1 Required 2 Required 3 Compute the activity rates for each of the three activities. (Round your answers to 2 decimal places.) Required 2 ) Complete thls question by entering your answers In the tabs below. Required 1 Required 2 Required 3 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 declmal 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 0. Alone diner who orders two drinks

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