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please help! Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restourant has been trying to better understand
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Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restourant has been trying to better understand costs at the restourant and has hired a student intern to conduct an activity-bosed costing study. The intern, in consultation with the owner, identified three mojor activities ond then completed the first-stage allocations of costs to the activity cost pools. The results appear below. The obove costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and topmanagement salaries. Some costs, such os the cost of cleaning the linens that cover the restourants 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 activity-bosed 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 $180,000 and that 12,000 diners had been served. Therefore, the average cost per diner was \$15. Required: 182. According to the activity-based costing system, what is the total cost and overoge cost per diner for serving each of the following parties of diners? (Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places.) Step by Step Solution
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