Your friend owns a restaurant with a bar. Her menu ranges from simple appetizers to very complex and expensive dinners. Customers may stop in for a quick appetizer or may visit for a six-course meal with accompanying wines. The restaurant employs a manager, waiters, cooks, and several general duty employees. The business operates out of a rented facility. Respond to the following questions:

1. List at least two variable costs for the restaurant. Also list two or more fixed costs you can think of. Explain your reasoning for both answers.

2. The restaurant serves an average of 1,400 customers per month, and currently allocates overhead using the number of customers as the cost driver. The amount of overhead charged to each customer is the same regardless of the food or beverage items ordered, $10.50. With your knowledge of overhead allocation, suggest another cost driver that may more accurately allocate overhead costs to customers. Explain why you believe the cost driver you suggest will be more accurate than using the number of customers.