Problem

(L. OBJ. 1) Calculating costs using Traditional and ABC [10 min] Blake and Roscoe are c...

(L. OBJ. 1) Calculating costs using Traditional and ABC [10 min]

Blake and Roscoe are college friends planning a skiing trip to Aspen before the New Year. They estimated the following costs for the trip:

Requirements

1. Blake suggests that the costs be shared equally. Calculate the amount each person would pay.

2 Roscoe does not like the idea because he plans to stay in the room rather than ski. Roscoe suggests that each type of cost be allocated to each person based on the above listed cost driver. Using the activity allocation for each person, calculate the amount that each person would pay based on his own consumption of the activity.

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