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Problem 4-14 (Algo) Compute and Use Activity Rates to Determine the Costs of Serving [LO4-2, LO4-3, LO4-4] Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in con owner, identified the following major activities: A group of diners who ask to sit at the same table is counted as a party Some costs, such as the costs of cleaning whether one person is at a table or the table is full. Other costs. such asjwashing dishes, depend on the number of Data concerning these activities are shown below: Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant, She knew that the month was $256,800 and that 20,000 diners had been served. Therefore, the average cost per diner was $12.84 20,000 diners =$12.84 per diner) Required: 1. Compute the acuvity rates for each of the three activities. 1. Data concerning these activities are shown below: Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the fotal cost for the month was $256,800 and that 20,000 diners had been served. Therefore, the average cost per diner was $1284 ($256,80020,000 diners =$12.84 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 fotal cost of serving each of the following parties of diniers? a. A party or 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 part (2) obove to costs per dinec in other words what is the average cost per diner for serving each of the following parties? a. A party of four diners who order three drinks in total. b. A party or two diners who do not onder any drinis. c. Alone diner who orders two dilinks. 3. Convert the total costs you computed in part () above to costs per ainer in other woras, what is the average cos serving each of the following parties? 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. Complete this question by entering your answers in the tabs below. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Round your intermediate calculations and final answers to 2 decimal places.)

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