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Question 3 - Activity-based costing Abdul, Brandon, and Clara have decided to share an apartment in Playa Vista for the coming school year. The rent
Question 3 - Activity-based costing Abdul, Brandon, and Clara have decided to share an apartment in Playa Vista for the coming school year. The rent will be $3,000 per month. There are two bedrooms in the apartment. Abdul and Brandon will share a bedroom and Clara will have her own. They estimate that groceries will cost $600 per month and that Abdul and Brandon will each eat 20 pounds of groceries and Clara will eat 10 pounds. Internet access will cost $60 per month. Clara uses the internet 10 hours day and Abdul uses the Internet 5 hours a day. Brandon does not use the internet at all. Required: (a) Brandon suggests that they share the costs equally. Calculate the total cost that each person would pay if they share the costs equally. (b) Abdul doesn't like Brandon's idea and suggests that each cost be allocated to each person based on their consumption of the activity. List the activity measure for each cost. Calculate the total cost that each person would pay based on their consumption of the activities
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