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Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The restaurant's owner wants to better understand his costs and hired a student
Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The restaurant's owner wants to better understand his
costs and hired a student intern to conduct an activitybased costing study. The intern identified three activities, completed the first
stage cost allocations and gathered the activity measure data shown below.
The above costs exclude organizationsustaining costs such as rent, property taxes, and topmanagement salaries.
Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of partles 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 restaurant costs. She only knew the total cost for the
month Including organizationsustaining costs was $ and diners had been served. Therefore, the average cost per
diner was $
Required:
and 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?
Note: Round your Intermedlate 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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