Nate and Joe have been friends since grade school and decided to go on a skiing trip to Stowe, Vermont this January. The estimated the following for the trip: Expense Estimated Costs Allocation Base Activity Allocation (Nate) Activity Allocation (Joe) Food $610.00 Number of meals eaten 11 13 Skiing $200.00 Number of lift tickets 5 2 Lodging $780.00 Number of nights 5 5 Total $1,590.00 (Round your answers to two decimal places when needed and use rounded answers for all future calculations). Total estimated cost / Total Individuals = Cost per person / = Joe does not like the idea because he plans to stay in the room rather than ski. Joe 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, calculate the amount that each person would pay based on his own consumption of the activity. Total Number Nate + Joe = Total Meals Eaten + = Lift Tickets + = Nights + = Expense Total estimated overhead Cost / Total estimated quantity of the overhead allocation base = Predetermined Overhead Allocation Rate Units Food / = per meal Skiing / = per ticket Lodging / = per night Nate Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Allocated Cost Food X = Skiing X = Lodging X = Total Joe Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Allocated Cost Food X = Skiing X = Lodging X = Total
Nate and Joe have been friends since grade school and decided to go on a skiing trip to Stowe, Vermont this January. The estimated the following for the trip: Expense Estimated Costs Allocation Base Activity Allocation (Nate) Activity Allocation (Joe) Food $610.00 Number of meals eaten 11 13 Skiing $200.00 Number of lift tickets 5 2 Lodging $780.00 Number of nights 5 5 Total $1,590.00 (Round your answers to two decimal places when needed and use rounded answers for all future calculations). Total estimated cost / Total Individuals = Cost per person / = Joe does not like the idea because he plans to stay in the room rather than ski. Joe 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, calculate the amount that each person would pay based on his own consumption of the activity. Total Number Nate + Joe = Total Meals Eaten + = Lift Tickets + = Nights + = Expense Total estimated overhead Cost / Total estimated quantity of the overhead allocation base = Predetermined Overhead Allocation Rate Units Food / = per meal Skiing / = per ticket Lodging / = per night Nate Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Allocated Cost Food X = Skiing X = Lodging X = Total Joe Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Allocated Cost Food X = Skiing X = Lodging X = Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Nate and Joe have been friends since grade school and decided to go on a skiing trip to Stowe, Vermont this January.
The estimated the following for the trip:
| Expense | Estimated Costs | Allocation Base | Activity Allocation (Nate) | Activity Allocation (Joe) |
|---|---|---|---|---|
| Food | $610.00 | Number of meals eaten | 11 | 13 |
| Skiing | $200.00 | Number of lift tickets | 5 | 2 |
| Lodging | $780.00 | Number of nights | 5 | 5 |
| Total | $1,590.00 |
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
| Total estimated cost | / | Total Individuals | = | Cost per person |
|---|---|---|---|---|
| / | = |
Joe does not like the idea because he plans to stay in the room rather than ski. Joe 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, calculate the amount that each person would pay based on his own consumption of the activity.
| Total Number | Nate | + | Joe | = | Total |
|---|---|---|---|---|---|
| Meals Eaten | + | = | |||
| Lift Tickets | + | = | |||
| Nights | + | = |
| Expense | Total estimated |
/ | Total estimated quantity of the overhead allocation base | = | Predetermined Overhead Allocation Rate | Units |
|---|---|---|---|---|---|---|
| Food | / | = | per meal | |||
| Skiing | / | = | per ticket | |||
| Lodging | / | = | per night |
| Nate | Predetermined Overhead Allocation Rate | X | Actual Quantity of the Allocation Base Used | = | Allocated Cost |
|---|---|---|---|---|---|
| Food | X | = | |||
| Skiing | X | = | |||
| Lodging | X | = | |||
| Total |
| Joe | Predetermined Overhead Allocation Rate | X | Actual Quantity of the Allocation Base Used | = | Allocated Cost |
|---|---|---|---|---|---|
| Food | X | = | |||
| Skiing | X | = | |||
| Lodging | X | = | |||
| Total |
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