(Physical and sales value allocations) Holdsclaw Basketball Camp runs two training camps. During 2006, it generated the following operating data:

The general ledger accounts show $38,000 for direct instructional costs and $4,000 for overhead associated with these two programs. The board of trustees wants to know the cost of each program.

a. Determine each program’s cost using a physical measurement base.

b. Determine each program’s cost using the sales value at split-off method.

c. Make a case for each allocation method in parts

(a) and (b). LO1.

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High School Leagues Amateur Adult Leagues Training hours taught Hourly tuition 2,000 $10 1,000 $30