Activity-based costing. The manager of Wildwater Adventurers uses activity-based costing to compute the costs of her raft trips. Each raft holds six paying customers and a guide. The company offers two types of raft trips — three-day float trips for beginners and three-day Whitewater trips for seasoned rafters. The breakdown of the costs is as follows:

a. Compute the cost of a four-raft. 28-person (including four guides) float trip.

b. Compute the cost of a four-raft, 28-person (including four guides) Whitewater trip.

c. Recommend a minimum price per customer to the manager if she wants to cover her costs.

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Activities (with cost drivers) Advertising (trips) Permit to Use the River (trips) Equipment Use (trips. people) Insurance (trips) Paying Guides (trips. guides) Food (people) Float Trip Costs $215 per trip 30 per trip 20 per trip + $5 per person (including guides) 75 per trip 300 per trip per guide 60 per person (including guides) Whitewater Trip Costs $215 per trip 50 per trip 40 per trip $8 per person (including guides) 127 per trip 400 per trip per guide 60 per person (including guides)