Q3

Check my 3 2.85 points ook Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity based costing study. The intern, in consultation with the owner, identified the following major activities: VINCE ALVINY HUR Serving party of diners Member of partis served Serving a diner Sumber of war Serving drinke Number of drinks ordered A group of diners who ask to sit at the same table is counted as a party. Some costs, such as the costs of cleaning inen, are the same whether one person is at a table or the table is fullOther costs, such as washing dishes, depend on the number of diners served Data concerning these activities are shown below. BEVIND Total cost * 43,00 B108,000 5 72.000 $ 263,20 Total vity 4.000 partie 20.000 dinara 41.00 din 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 $263,200 and that 20.000 diners had been served. Therefore, the average cost per diner was $8.95 $263,200 20.000 diners $13.96 per dinert Required: 1 Compute the activity rates for each of the three activities 2. According to the activity-based costing system, what is the total cost of serving each of the following 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 c. Alone diner who orders two drinks 3. Convert the total costs you computed in part(2) above to costs per diet. In other words, what is the average cost per diener 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 o ence