Brian and Gary are college friends planning a skiing trip to Killington before the New Year. They

Question:

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 Gary Brian 550 Pounds of food caten 240 # of lift tickets 320 # of night


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 theactivity.

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Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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