Problem 4-14 Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO4-2, LO4-3, LO4-4] Gino's Restaurant is a popu costs at the restaurant and has hired a student intern to conduct an activity-based costing study The intern. in owner, identified the following major activities ular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand consuitation with the Activity Cost Pool Serving a party of diners Serving a diner Serving drinks ok ity Number of parties se Number of diners served Number of drinks ordered nces Whether one person is at a table or the table is full Other costs, such as washing dishes. depend on the number of diner A group of diners who ask to sit at th e same table is counted as a party. Some costs, such as the costs of cleaning linen, are the same s served Data concerning these activities are shown below Total cost Total activity serving a Party 55 $19,ea0 serving a Dinenlll////serving Orinkg/llllllllTota1////// $112,000 $222,800 5,000 parties 20,ee0 diners 51,000 drin ks Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant She knew that the total cost for the month was $222.800 and that 20,000 diners had been served. Thereforel the average cost per diner was $1114 $222800 20,000 diners $11,14 per diner). Required 1 Compute the activity rates for each of the three activit 2. According to the activity-based costing system, what is the total cost of serving eacn of the foilowing parties of diners? a. A party of four diners who order three drinks in total b A party of two diners who do not order any drinks, l c. A lone diner who orders two drinks 3. Convert the total costs you computed in part (2) above to costs per diner Ih other words, what is the average cost per diner for serving each of the following parties? a A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks c A lone diner who orders two drinks. Complete this question by entering your answers in the tabs below