Recreation Inc. provides bicycle training classes for children and adults. During the year, the company had the following operating data:

Direct instructional costs for the bicycle training classes for the year were \(\$ 165,000\); overhead costs for the two programs were \(\$ 80,000\). The store manager wants to know the cost of each program.

a. Determine each program's cost using a physical measure base.

b. Determine each program's cost using a physical measure for allocating direct instructional costs and revenues for allocating overhead.

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Training hours taught Hourly training fee Children Adults 2,000 6.000 $50 $75