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Gino's Restautant is a popular restaurant in Boston. Massachusetts. The owner of the restaurant has been trying to betrer understand costs at the restaurant and

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Gino's Restautant is a popular restaurant in Boston. Massachusetts. The owner of the restaurant has been trying to betrer understand costs at the restaurant and has hired o student intern to conduct an activity based costing study The intern, in consultation with the owner, identified the following major activities: A group of diners who ask to sit at the same toble 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 Prior to the activity-based costing study, the owner knew very little about the costs of the restourant. 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 $1844 ( $184,400 10,000 diners =$18.44 per diner) Required: 1. Compute the activity rates for each of the three octivities. 2. According to the activity based costing system, what is the total cost of serving each of the following parzies of diners? 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 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 diner for serving each of the following parties? 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 lone diner who orders two dinks: Complete this question by entering your answers in the tabs below. Compute the activity rates for each of the three activities. (Round your answers to 2 decimal places.)

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