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Gino's Restaurant is a popular restaurant in Boston, Massachusetts. 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 consultatian with the owner, identified the following major activities: A group of diners who ask to sit at the same table is courted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the tabie is ful. Other costs, such as washing dishes, depend on the number of diners served. Data concerning these activities are shown below: Prior to the activity based costing study, the owner knew very littie about the costs af the restaurant. She knew that the total cost for the month was $345,300 and that 30,000 diners had been serwed. Therefore, the awerage cost per diner was $11.51 (\$345,300 + 30,000 diners =$11.51 per diner]. Required: 1. Compute the activity rates for each of the three activities. 2. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. A party of four diners who order three drinks in tatal. b. A party of two diners who do not order any drinks. C. A lane diner who orders two drinks. 3. Convert the total costs you computed in part (2) abowe to costs per diner. In other words, what is the awerage cost per diner for serving each of the following parties? a. A party of four diners who order three drinks in tatal. b. A party of two diners who do not order any drinks. c. A lane diner who orders two drinks. Complete this question by entering your answers in the tabs below. Compute the activity rates for each of the three activities. (Rlound your answers to 2 decimal places.)

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