Calculate the amount each person would pay

Assignment Help Cost Accounting
Reference no: EM13515368

Calculating costs using traditional and ABC

Brian and Gary are college friends planning a skiing trip to Killington before the New Year. They estimated the following costs for the trip:




Activity Allocation

Estimated Costs

Cost Driver

Brian

Gary

Food

$ 550

Pounds of food eaten

24

26

Skiing

240

# of lift tickets

3

0

Lodging

320

# of nights

4

4


$ 1,110




Requirements

1. Brian suggests that the costs be shared equally. Calculate the amount each person would pay.

2. Gary does not like the idea because he plans to stay in the room rather than ski. Gary suggests that each type of cost be allocated to each person based on the above listed cost driver. Using the activity allocation for each person, calculate the amount that each person would pay based on his own consumption of the activity.

Reference no: EM13515368

Questions Cloud

Calculate the drift velocity of the charge carriers : A thin metal film of length 2.80 cm, width of 0.700 cm, and thickness of 30.0 micrometers is used to measure the Hall effect. Calculate the drift velocity of the charge carriers
What is the concentration of the solution prepared : What is the concentration (molarity) of the solution prepared by dissolving 1.83g of Co(NO3)2 in HCl acid to give a total volume of 100 mL
Find what is the maximum torque : A narrow flat coil wound on a square frame has 120 turns and sides of 21.5 cm. What is the maximum torque that can be exerted by the field on the coil
How does an investor in common stocks reconcile the large : How does an investor in common stocks reconcile the large variability in stock returns, and the big drops that have occurred, with taking a prudent position in owning a portfolio of financial assets?
Calculate the amount each person would pay : Calculate the amount each person would pay and calculate the amount that each person would pay based on his own consumption of the activity.
Find what is the largest wavelength : Two sources emit waves that are in phase with each other. What is the largest wavelength that will give constructive interference at an observation point 161 m from one source
Explain a solution of naoh is added to the supernatant : This precipitate is filtered off and a solution of NaOH is added to the supernatant liquid until it is strongly alkaline. No precipitate is formed.
What is the new rotational inertia : A spinning disk has a moment of inertia about its center equal to !.00 kgm^2. A 4.0 kg mass is placed at the outer edge, 0.50 m from the axis. What is the new rotational inertia
How many radians will it pass through before it stops : Let an initial velocity of a flywheel be 20 rad/s and let it be slowing at 4.0 rad/s. How many radians will it pass through before it stops

Reviews

Write a Review

Cost Accounting Questions & Answers

  Create displays using the sec 10-k for your company

You may benefit from the use of the UMUC Effective Writing Center. (See: http://www.umuc.edu/ewc/index.shtml)

  Examine the income statement of that company

Examine the income statement of that company for each of the last few years of its existence, we'd find that the company was profitable. Its revenues exceeded its expenses, and the company thus reported a "net income" (as opposed to a net loss).

  Prepare a cash budget statement of cash flows

Prepare a budgeted income statement, under absorption costing for Mile-High for the months of April, May and June assuming that Mile High opts to use the variable delivery service. Include supporting schedules to support the revenues and manufactu..

  Classify each cost as either variable fixed or mixed

Following is a list of various costs incurred in producing frozen pizzas. With respect to the production and sale of frozen pizzas, classify each cost as either variable, fixed, or mixed.

  Alternative methods of joint-cost allocation product-mix

alternative methods of joint-cost allocation product-mix decisions. the southern oil company buys crude vegetable oil.

  Prepare balance sheet for canberra limited

Prepare an Income Statement and balance sheet for Canberra Limited for the year ending 31st December 2012 - Prepare closing Entries

  Costing systems and traditional overhead allocation systems

Show the main differences between ABC costing systems and traditional overhead allocation systems. Based on your knowledge and experience, which technique you prefer and why?

  How would you respond to morris solution to pricing problem

How would you respond to Morris' solution to the pricing problem? Please explain your reasoning - how might target costing be used to help solve this pricing dilemma?

  Compute the plantwide factory overhead rate

Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.

  Describe the current costing system

Describe the current costing system and list the potential weaknesses of this system regarding product costing accuracy and cost control and describe the proposed ABC system, the benefits from using it and why those benefits occur.

  Evaluate the contribution margin for february

Management of Gilmartin Corporation, a manufacturing company. Evaluate the contribution margin for February.

  Compute operating profit for march and april

Compute operating profit for March and April 2012 using variable costing and reconcile and explain why the income was different each month using the two methods.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd