Three families went out to dinner together for a soccer team celebration. They asked for separate...

 

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Three families went out to dinner together for a soccer team celebration. They asked for separate checks, but the waiter was unable to do so. When they received the bill, they weren't sure what was the best way to divide up the costs. Someone suggested that they simply divide the bill by the number of people to get a cost per person. Someone else suggested that they take the total bill and divide by the number of families. Luckily, one of the parents was a CPA and determined that it would be most accurate to use something similar to an Activity Based Costing situation. Required: 1. Allocate the bill based on the number of families. 2. Allocate the bill based on the number of people at the table. 3. Allocate the bill based on the different cost drivers. (See additional data.) Three families went out to dinner together for a soccer team celebration. They asked for separate checks, but the waiter was unable to do so. When they received the bill, they weren't sure what was the best way to divide up the costs. Someone suggested that they simply divide the bill by the number of people to get a cost per person. Someone else suggested that they take the total bill and divide by the number of families. Luckily, one of the parents was a CPA and determined that it would be most accurate to use something similar to an Activity Based Costing situation. Required: 1. Allocate the bill based on the number of families. 2. Allocate the bill based on the number of people at the table. 3. Allocate the bill based on the different cost drivers. (See additional data.)

Answer rating: 100% (QA)

Allocate the bill based on the number of families Jones Family Carter Family Smith Family Total Total bill 23684 7894666667 7894666667 7894666667 2368... View the full answer