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Jordan's Lakeside is a popular restaurant located on Lake Muskoka in Ontario. The owner of the restaurant has been trying to better understand costs
Jordan's Lakeside is a popular restaurant located on Lake Muskoka in Ontario. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an ABC study. The intern, in consultation with the owner, identified the following major activities: Activity Cost Pool Serving a party of diners Serving a diner Activity Measure Number of parties served Number of diners served Number of drinks ordered Serving drinks One or more diners who ask to sit at a table are 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 displayed below. Total cost Total activity Serving a Party $ 26,600 4,750 parties Serving a Diner $ 64,350 9,750 diners Serving Drinks $18,600 7,750 drinks Total $109,550 Prior to the ABC study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $109,550 and that 9,750 diners had been served. Therefore, the average cost per diner was approximately $11.24 ($109.550 +9,750 diners). Required: 1. Compute the activity rate for each of the three activities. (Round your answers to 2 decimal places.) Serving a Serving Serving a Party Diner Drinks Cost per unit of activity
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