Problem $4-14($Algo$)$ Compute and Use Activity Rates to Determine the Costs of Serving Customers $[$LO$4-2,$ LO$4-3,$ LO$4-4]$

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 consultation with the owner, identified the following major activities:

$58$:$35$

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 $$162,000$ and that $10,000$ diners had been served. Therefore, the average cost per diner was $10,000$ diners $=$ $$16\mathrm{.}20$ per diner$).$

Required:

Compute the activity rates for each of the three activities.

According to the activity$-$based costing system, what is the total cost of serving each of the following parties of diners?

Prev

$1$ of $50$

Next