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 diners Number of parties served Serving a diner Number of diners served Serving drinks 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 concerning these activities are shown below. Total Serving a Party Serving a Dinner Serving Drinks $70,000 $184,400 Total cost $46,400 $68,000 40,000 drinks 10,000 diners Total activity 8,000 parties 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 $184,400 and that 10,000 diners had been served. Therefore, the average cost per diner was $18.44 ($184,400 10,000 diners $18.44 per diner)