Jane's Cookhouse is a popular restaurant located in a scenic setting. 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 three major activities. The intem then completed the first-stage allocations of costs to the activity cost pools, using data from last month's operations. The results appear below: Activity Cost Pool Serving a party of diners Total Cost $12,000 Total Activity 5,000 parties Serving a diner Activity Measure Number of parties served Number of diners served Number of drinks ordered Number of diners 12,000 diners Serving a drink $90,000 $26,000 $52,000 10,000 drinks Other organization sustaining costs 12,000 diners The above costs include all of the costs of the restaurant except for organization-sustaining costs such as property taxes and top-management salaries. A group of diners who ask to sit at the same table are counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served. 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 (including organization-sustaining costs) was $180,000 and that 12,000 diners had been served. Required: 1. Using the traditional method, assign the total cost for the month based on a single cost driver of # of diners. Compute the total cost for serving each of the following. (3 marks) 1. A party of four diners who order three drinks in total. 2. A party of two diners who do not order any drinks. 3. A lone diner who orders two drinks. 2. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (4 marks) 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. 3. Convert the total costs you computed in (2) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (2 marks) 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. 4. Why do the costs for the three different parties differ from each other in part 1 and 2? Why does the cost per diner differ in parts 1 and 3