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Hiram's Lakeside 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 Lakeside 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 hired a student intern to conduct an activitybased costing study. The intern, in consultation
with the owner, identified three major activities and then completed the firststage allocations of costs to the activity cost pools. The
results appear below.
The above costs include all of the costs of the restaurant except for organizationsustaining costs such as rent, property taxes, and top
management salaries.
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, depend on the number of diners served or the number of drinks served.
Prior to the activitybased costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for
the month including organizationsustaining costs was $ and that diners had been served. Therefore, the average
cost per diner was $
Required:
& According to the activitybased costing system, what is the total cost and average cost per diner for serving each of the following
parties of diners? Round your intermediate calculations to decimal places. Round your Total Cost final answers to decimal
places and your Average Cost final answers to decimal places.
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