Solved

John Ebert, a Graduating Student at a University in Calgary

Question 148

Essay

John Ebert, a graduating student at a university in Calgary, received an invitation to visit a prospective employer in Halifax. A few days later, he received an invitation from a prospective employer in Toronto. He decided to combine his visits, travelling from Calgary to Halifax, Halifax to Toronto, and Toronto to Calgary.
John Ebert, a graduating student at a university in Calgary, received an invitation to visit a prospective employer in Halifax. A few days later, he received an invitation from a prospective employer in Toronto. He decided to combine his visits, travelling from Calgary to Halifax, Halifax to Toronto, and Toronto to Calgary. Ebert paid $1,900 for his three-leg flight (Calgary to Halifax, Halifax to Toronto, Toronto to Calgary). In addition, he paid $30 for a limousine from his home to Calgary Airport and another $30 for a limousine from Calgary Airport to his home when he returned. Required: a. Allocate the $1,900 airfare between the employers in Halifax and Toronto using both the stand-alone and incremental methods? b. How would you allocate the $60 limousine fare? John Ebert, a graduating student at a university in Calgary, received an invitation to visit a prospective employer in Halifax. A few days later, he received an invitation from a prospective employer in Toronto. He decided to combine his visits, travelling from Calgary to Halifax, Halifax to Toronto, and Toronto to Calgary. Ebert paid $1,900 for his three-leg flight (Calgary to Halifax, Halifax to Toronto, Toronto to Calgary). In addition, he paid $30 for a limousine from his home to Calgary Airport and another $30 for a limousine from Calgary Airport to his home when he returned. Required: a. Allocate the $1,900 airfare between the employers in Halifax and Toronto using both the stand-alone and incremental methods? b. How would you allocate the $60 limousine fare? Ebert paid $1,900 for his three-leg flight (Calgary to Halifax, Halifax to Toronto, Toronto to Calgary). In addition, he paid $30 for a limousine from his home to Calgary Airport and another $30 for a limousine from Calgary Airport to his home when he returned.
Required:
a. Allocate the $1,900 airfare between the employers in Halifax and Toronto using both the stand-alone and incremental methods?
b. How would you allocate the $60 limousine fare?

Correct Answer:

verifed

Verified

1. Allocation of the $1,900 airfare: Alt...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: One of the purposes of allocating indirect

Q76: Use the information below to answer the

Q88: Should a company allocate its corporate costs

Q113: The single-rate method is when all indirect

Q129: The costs of designing and implementing sophisticated

Q130: Brandy has been manager of the downtown

Q145: Benefits from using a well-designed cost allocation

Q153: Which method allows for partial recognition of

Q170: If one is willing to put in

Q177: Which of the following is the first