Managerial Accounting: Please explain and show each step.
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26. Activity-based costing. Kaysi Hoffman, the manager of Wildwater Adventurers, uses activity-based costing to compute the costs of his raft trips. Each raft holds six paying customers and a guide. The company offers two types of raft trips three-day float trips for beginners and three-day whitewater trips for seasoned rafters. The breakdown of the costs is as follows: Activities (with cost drivers) Float Trip Costs Whitewater Trip Costs Advertising (trips).. Permit to Use the River (trips). …. $215 per trip $215 per trip 30 per trip 50 per trip Equipment Use (trips, people). .. .. 20 per trip $5 per person (including guides) 40 per trip $8 per person (including guides) Insurance (trips).. Paying Guides (trips, guides). Food (people) .. 75 per trip 127 per trip 300 per trip per guide 400 per trip per guide 60 per person (including guides) 60 per person (including guides) Compute the cost of a four-raft, 28-person (including four guides) float trip b. Compute the cost of a four-raft, 28-person (including four guides) whitewater trip a. c. Recommend a minimum price per customer to the manager if she wants to cover her costs. Get Accounting Homework Help Today