Question: 2. Windy River Float Trips uses activity-based costing to compute the cost of the river raft trips. Each raft holds six customers and a guide.
2. Windy River Float Trips uses activity-based costing to compute the cost of the river raft trips. Each raft holds six customers and a guide. The costs for these float trips are as follows: Activities (cost driver) Trailer rent fee (trip) Advertising (trips) Insurance (trips) Depreciation (trips, people) Costs $127 per trip 215 per trip 50 per trip 40 per trip plus $8 per person Wages (trips, guides) 400 per trip per guide Shore lunch (people) 60 per person Required: Compute the cost of a raft trip with 4 rafts, 24 customers and 4 guides (10 points)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
