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 eventsan 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?