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:

a. 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.
c. Recommend a minimum price per customer to the manager if she wants to cover her costs.

Transcribed Image Text:

Activities (with cost drivers) Float Trip Costs Whitewater Trip Costs $215 per trip Permit to Use the River (trips)..... Equipment Use (trips, people). 30 per trip 50 per trip 20 per trip +$5 per person 40 per trip $8 per person (including guides) Paying Guides (trips, guides). . .. . ..300 per trip per guide (including guides) including guides) 127 per trip 400 per trip per guide 75 per trip 60 per person 60 per person (including guides)