14.24 * Allocation of common costs Objective 4 Angela Stonely, a self-employed consultant in Brisbane, received an invitation to visit a prospective client in Adelaide. A few days later, she received an invitation to make a presentation to a prospective client in Christchurch, New Zealand. She decided to combine her visits, travelling from Brisbane to Adelaide, and Adelaide to Christchurch. Stonely received offers for her consulting services from both companies. Upon her return, she decided to accept the engagement in Adelaide. She is puzzled over how to allocate her travel costs between the two clients. She has collected the following data for regular return-trip fares with no stopovers: Brisbane to Adelaide $600 Brisbane to Christchurch $400 Stonely paid $900 for her three-leg flight (Brisbane-Adelaide-Christchurch-Brisbane). In addition, she paid $45 each way ($90 total) for limousines from her home to Brisbane Airport and back when she returned. Required 1. How should Angela allocate the $900 airfare between the clients in Adelaide and Christchurch using: (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method and (c) the Shapley value method? 2. Which method would you recommend Angela use and why? 3. How should Angela allocate the $90 limousine charges to and from her home and Brisbane Airport