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Hiram's Laiteslde is a popular restaurant located on Lake Washington In Seattle. The owner of the restaurant has been trying to better understand costs at
Hiram's Laiteslde is a popular restaurant located on Lake Washington In Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hlred a student intern to conduct an acthIty-based costlng study. The Intern. In consultation wlth the owner. Identied three major actIvItIes and then completed the firststage allocatlons of costs to the actlvlty.r cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a part3.I of diners number of parties served $ 12,880 5,693 parties Serving a diner number of diners served 3 18?,958 12,?66 diners Serving drinks Number of drinks ordered 3; 2?,258 lease drinks The above costs Include ail of the costs of the restaurant except for organizationsustaining costs such as rent property taxes. and top management salarles. Some costs. such as the cost of cieanlng the linens that cover the restaurant's tables, vary wlth the number of partles served. Other costs. such as washlng plates and glasses. depend on the number of dIners served or the number of drinks served. Prior to the actIvItybased costing study. the owner knew very iittle about the costs of the restaurant She knew that the total cost for the month {Includlng organization-sustaining costs] was $180000 and that 11000 dIners had been served. Therefore, the average cost per diner was $15. Required: 1&2. Accordlng to the actWItybased costlng system. what is the total cost and average cost per dIner for serving each ofthe following partles of diners? {Round your Intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost nal answers to 3 declmal places} 1A party ol six diners who order lhree drinks in lolal. per diner b. A party of ve diners who do not order any dnnlts. _ per diner c. A pady ofo-ne diner who orders uee drinks. per diner
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