Richard's Events provides catering services, among other services. The company has adopted activity$-$based costing $($ABC$)$ for the catering services. The ABC system classifies activities into two groups based on the cost driver used: Diners and Events. Each event is limited to $25$ guests and requires four people to serve and clean up$.$ Richard's Events offers two types of catered events$$an informal, outside party and a formal, seated meal.

The cost accountant at Richard's Events has developed the following cost$-$driver rates for the individual activities:

Activities $($and cost drivers$)$ Informal Party Formal Dinner

Advertising $($events$)$ $ $120$ per event $ $120$ per event

Planning $($events$)90$ per event $150$ per event

Renting equipment $($events$,$ diners$)60$ per event plus $12$ per diner $90$ per event plus $24$ per diner

Obtaining insurance $($events$)240$ per event $480$ per event

Serving $($events$)240$ per event $360$ per event

Preparing food $($diners$)24$ per diner $36$ per diner

Per$-$event costs do not vary with the number of diners.

Required:

Compute the cost of a $25-$guest informal party.

Compute the cost of a $25-$guest formal meal.

How much should Richard's Events charge for each diner for each type of event if the company is to cover its costs?