his Quiz2: 12 pts poss Brandy and Albert are colege triends planning a sking tri

Question

his Quiz2: 12 pts poss Brandy and Albert are colege triends planning a sking trip to Kilington before the new year. They estimated the following for the trip (Click the icon to view the costs ) Read the requirements person would pay. If the costs are shared equally, each person would pay $ Requirement 2. Alberi does not like the idea of sharing the oosts equaly the above-listed allocation of sharing the costs equally because he plans to stay in the room rather than ski. Albert suggests that each type of cost be allocated to each the room rather than ski. Albert bases. Using the activity allocation for each person, calculate the amount that each person would pay based on his own consumption of the activity. f the costs were allocated, each person would pay the following Allocated Cost Brandy Albert Data Table Requirements Activity Allocation 1. Brandy suggests that the costs be shared equaly Calculate the amount each person would pay Costs Allocation Base Brandy Albert Food S 500 Pounds of food eaten Sking Lodging 16 34 2. Albert does not like the idea of sharing the costs equally because he plans to stay in the room rather than ski. Albert suggests that each type of cost be allocated to each person based on the above-listed allocation bases. Using the activity allocation for each person, cakculate the amount that each person would pay based on his own consumption of the activity 210 Number of ift tickets 440 Number of nights $ 1,150 Print Done Print Done

Explanation / Answer

Requirement 1 If the costs are shared equally, each person would pay    (1150/2) = 575 Requirement 2 If the cost were allocated, each person would pay Brandy 590 Albert 560 Calulation for your understanding Estimated Costs-A Allocation Base Total Activity-B Cost per activity driver=A/B Activity No. Costs allocated to Brandy Activity No. Costs allocated to Albert Food 500 Pounds for food eaten 50 10 16 160 34 340 Skiing 210 Number of ski tickets 2 105 2 210 0 0 Lodging 440 Number of rights 4 110 2 220 2 220 Total cost allocated 1150 590 560

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