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Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her...

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties, an afternoon picnic and an evening formal dinner. The breakdown of the costs follows:

  Activities (and cost drivers) Afternoon Picnic Formal Dinner
  Advertising (parties) $ 91 per party $ 91 per party
  Planning (parties) $ 82 per party $ 102 per party
  Renting equipment $ 44 per party plus $ 75 per party plus
       (parties, guests) $ 10 per guest $ 24 per guest
  Obtaining insurance (parties) $ 215 per party $ 385 per party
  Serving (parties, servers) $ 45 per server per party $ 83 per server per party
  Preparing food (guests) $ 16 per guest $ 32 per guest
Per party costs do not vary with the number of guests.
Required:
(a)

Compute the cost of a 20-guest afternoon picnic. (Omit the "$" sign in your response.)

  Afternoon picnic $
(b)

Compute the cost of a 20-guest evening formal dinner. (Omit the "$" sign in your response.)

  Evening formal dinner $
(c)

How much should Cathy charge for each guest for each type of party if she wants to cover her costs? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Charging Amount
  Afternoon picnic $     
  Formal dinner $    
0 0
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