Activity-Based Costing

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. )