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Calculating cost using traditional and activity based systems Bubba and Danny are college friends planning a skiing trip to Killington before the new year. They
Calculating cost using traditional and activity based systems
Bubba and Danny are college friends planning a skiing trip to Killington before the new year. They estimated the following for the trip.
Activity Allocation | ||||
Estimated Costs | Allocation Base | Bubba | Danny | |
Food | 400 | Pounds of Food Eaten | 24 | 26 |
Skiing | 300 | Number of lift tickets | 2 | 0 |
Lodging | 280 | Number of Night | 2 | 2 |
980 |
Requirements
- Bubba suggest that the cost be shared equally. Calculate the amount each person would pay.
- Danny does not like the idea of sharing cost equally because he plans to stay in the room rather than ski. Danny suggests that each type of cost be allocated to each person based on the above-listed allocation bases. Using the activity allocation for each person, calculate the amount that each person would pay based on his own consumption of the activity.
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