Question

Activity Cost Pool Activity Measure Serving a party of Serving a diner Serving drinks Number of parties Number of diners Number of drinks diners served served ordered Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. Data conceming these activities are shown below Serving a Party Serving a Dinner Serving DrinksTotal Total cost $51,000 Total $124,000 $95,200 $270,200 6,000 parties 20,000 diners 56,000 drinks activity 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 $270,200 and that 20,000 diners had been served. Therefore, the average cost per diner was $13.51 ($270,200 20,000 diners $13.51 per diner). Required 1. Compute the activity rates for each of the three activities. (Round your answers to 2 decimal places.) Cost per unit activi Serving a Part Serving a Diner Serving Drinks per per diner per drink 2.According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) aA party of four diners who order three drinks in total . A party of two diners who do not order any drinks C. A party of one diner who orders two drinks. Party of four diners who order three drinks Party of two diners who order no drinks Party of one diner who ordens two drinks 3. Convert the total costs you computed in part (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 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 party of one diner who orders two drinks. Average c Party of four diners who order three drinks Party of two diners who order no drinks Party of one diner who orders two drinks per diner per diner per

Answer 1