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Question 6 12 pts Wildwater Adventures offers two types of river raft trips: Beginning and Advanced. The company uses an Activity based costing system to

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Question 6 12 pts Wildwater Adventures offers two types of river raft trips: Beginning and Advanced. The company uses an Activity based costing system to allocate overhead costs. Wildwater's activity areas and related annual data follow. Activity Cost of Activity Allocation Base Guide Training $135,000 Number of rapids Number of miles traveled Raft Maintenance $40.000 $175,000 Total Wildwater gathered the following information about its raft trips: Total Miles Total Rafters Trip Type Beginner 7.500 Number of trips Total number of rapids 75 75 25 75 100 150 750 100 Advanced 2.500 Totals 10,000 850 Required: 1. Compute the activity rate that Wildwater uses for guide training. Label your answer. 2. Prior to using its ABC system, Wildwater used a single allocation rate based on the number of rafters. Compute this allocation rate. Label your answer. Round to the nearest cent. 3. On a per trip basis(unit basis), what amount was a Beginner trip over or (Under) costed under the single allocation rate? If under costed put a negative (-) sign in front of your answer. Round final answer to the nearest dollar. HTML Editora I A : B - D I = A 2 = = = = = = VOTT: 12pt = - Paragraph

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