Activity-Based Costing

question 110

Essay

Activity-based costing.Lena Marks,the manager of Eco Tour Charters,uses activity-based costing to compute the costs of her eco-tour charters for various groups.Each chartered boat holds six paying customers and a guide.The company offers two types of charters to groups that contract by event-half-day trips for birding and to see the pelican islands and full-day jungle cruises through manatee habitats.The breakdown of the costs is as follows:

Required:
a.Compute the cost of a corporate event requiring four boats for half-day charters for 28-persons (including four guides).
b.Compute the cost of a corporate event requiring four boats for full-day charters for 28-persons (including four guides).
c.Recommend a minimum price per customer to the manager if she wants to cover her costs.
(Eco Tour Charters;activity-based costing. )

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Definitions:

Inductance

The property of an electrical conductor by which a change in current flowing through it induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Wire Resistance

The electrical resistance of a wire, determined by its material, length, and cross-sectional area, affecting the flow of electric current through it.

Fleming's Left-hand Generator Rule

A rule used to predict the direction of movement in a motor, the direction of induced current, or the force on a conductor in a magnetic field, based on the thumb, forefinger, and middle finger of the left hand.

Time Constant

The time required for a system to charge or discharge to approximately 63.2% of its maximum value, characteristic of both RC and RL circuits.