Ch. 17 Activity Based Coating Three familiet went out to dinner together for a soccer team celebration. They need for watchecks, but the water was able to do so. When they received the bil, they weren't sure what was the best way to divide up the costs. Someoned that they simply divide the be by the number of people to get a cost per person, someone che suggested that they take the total land divide by the number of families one of the parents was OA and determined that it would be most accurate to something similar to an Activity Based Costing situation Required 1. Allocate the bill based on the number of familles 2. Allocate the hill based on the number of people at the table 3. Alocate the bill based on the different cont de se additional data) Dinner Bill details Cost PS Deer Appetur Subtotal Sales to subtotal Tip 15% of subtotal Total 115 26 5 146 13 14 21.9 11.04 5 lones family Carter family Smith family Total 11 Number of people Number of peope who ate plaza Number of people who drank beer Number of people who we appeti 0 ly O 17 Activity Based Costing Name Direer bildet Cost Plze Beer Appetizers bal Sales tax total The 15% of subtotal Total 115 26 5 146 13.14 21.9 181.04 Carter family Smith family Tel Jones family 5 3 Number of people Number of people who teplass Number of people who drunk beer Number of people who steppet 11 9 5 1 1 0 Allocate the bil based on the number of families Canarfem Smith and Total Total 181.04 Allocate the billaud on the number of people! Jones family Carter family Smith family Tool Total Total number of people Cost per person Cast: logo Page Ch. 17 Activity Based Costing Nane Dinner till details Cost Pura Appetizers tattotal Sales tax subtotal Tip 15 of subtotal Total 115 26 5 146 13.14 21.9 181.04 Smith family Total 11 Number of people Number of people who ate pizza Number of people who drank beer Number of people who ate appetizers Jones family 5 3 o 1 Carterly 2 2 2 4 4 Allocate the bill based on the different cost drivers Jones tamby Carter family Smith family Total Dinner Bil details: Cost 115 Pizza of people who ate pizza Cost per person Pla Cost assigned Beer of people who drank beer Cost per person Beer Cost assigned Appetizers # of people who ate appetizers Cost per person Appetizer cost assigned subtotal fales tax 95 subtotal Tip 15 of subtotal Total 140.00 1114 21.90 11.0 5 ly Ch. 17 Activity Based Costing Name 1. Which allocation would you prefer if you were the lones? Why? 2. Which allocation would you prefer if you were the Carters? Why? 3. Which allocation would you prefer if you were the Smiths? Why? 4. How should you allocate the cost of the appetizers? S. How should you allocate the cost of the tip? 6. Did you learn anything new from this exercise