EXERCISE 7-14 Calculating and Interpreting Activity -Based Costing Data [LO7-3, LO7- 4] Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a studen intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Serving a party of diners serving a diner serving drinks Activity Measure Number of parties served Number of diners served Number of drinks ordered Total Cost $33,000 $138,000 $24,000 Total Activity 6,000 parties 15,000 diners 10,000 drinks