User Account

All Pages

Limousine charges between the clients in seattle and denver

Assignment Help Accounting Basics
Reference no: EM131666261

Question: Allocation of common costs. Gordon Grimes, a self-employed consultant near Atlanta, received an invitation to visit a prospective client in Seattle. A few days later, he received an invitation to make a presentation to a prospective client in Denver. He decided to combine his visits, traveling from Atlanta to Seattle, Seattle to Denver, and Denver to Atlanta. Grimes received offers for his consulting services from both companies. Upon his return, he decided to accept the engagement in Denver. He is puzzled over how to allocate his travel costs between the two clients. He has collected the following data for regular round-trip fares with no stopovers:

Atlanta to Seattle           $600

Atlanta to Denver           $400

Grimes paid $900 for his three-leg flight (Atlanta-Seattle, Seattle-Denver, Denver-Atlanta). In addition, he paid $45 each way ($90 total) for limousines from his home to Atlanta Airport and back when he returned.

1. How should Grimes allocate the $900 airfare between the clients in Seattle and Denver using

(a) the stand-alone cost-allocation method,

(b) the incremental cost-allocation method, and

(c) the Shapley value method?

2. Which method would you recommend Grimes use and why?

3. How should Grimes allocate the $90 limousine charges between the clients in Seattle and Denver?

Reference no: EM131666261

Questions Cloud

Define the various types of child abuse and their prevalence : Briefly describe the various types of child abuse and their prevalence in the United States
Growth and spread of humans on earth : Class, can you explain why the onset of the Holocene Epoch led to the growth and spread of humans on Earth.
Explain the sql statement errors : Explain the SQL Statement Errors. Include any additional comments that you might have about the statements. When prompted to add tables, click the Close button.
Physical geography of the earth : Describe one effect that humans have had on the physical geography of the Earth. Is this a beneficial or detrimental effect? Why?
Limousine charges between the clients in seattle and denver : How should Grimes allocate the $90 limousine charges between the clients in Seattle and Denver?
Stages of dune formation and the nature of airflow : Class, can you discuss the early stages of dune formation and the nature of airflow during this time.
Discuss you reaction to these proposed amendments : Discuss you reaction to these proposed amendments. What are the pros and cons of each proposal and would these proposals be constitutional
Implement to prevent desertification : How has it affected West Africa? What policies would you implement to prevent desertification in the United States?
Define instead of ordinary people from the community : instead of ordinary people from the community, What problems might arises as a result of the use of professional jurors

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare journal entries to record the following four separat

Prepare journal entries to record the following four separate issuances of stock.

  G owns a sole proprietorship while h is the 100 shareholder

g owns a sole proprietorship while h is the 100 shareholder of a corporation. the businesses in the current year make a

  Which accounting principle best describes each practices

If $51,000 cash is paid to buy land, the land is reported on the buyer's balance sheet at $51,000.

  Chart of accounts for exact wording of account titles

On January 1, the first day of the fiscal year, a company issues a $1,200,000, 9%, five-year bond that pays semiannual interest of $54,000 ($1,200,000 × 9% × ½), receiving cash of $1,153,670.

  Future value at the end of year

Find the future value at the end of year 6, FVA6, for both annuities.

  Methods of analysis

Methods of Analysis

  Would your answer be different in b if the productive

schopp inc. has been manufacturing its own shades for its table lamps. the company is currently operating at 100 of

  Evaluate the cost recovery

Hazel purchased a new business asset (five-year property) on November 30, 2009, at a cost of $100,000. This was the only asset acquired by Hazel during 2009. On January 7, 2010, Hazel placed the asset in service. She did not elect to expense any o..

  Parts that make up the sign like the pole

When people think of the Gestalt theory the thought that comes to mind is the first thing that comes to mind. You name something like a sign and simply think the sign when there are other parts that make up the sign like the pole and various othe..

  Shelby farm has a plan under which retired employees

federal delivery service began a defined-benefit pension plan for its employees on january 1 2013. pertinent data

  Refinement and standardization of financial statements

Refinement and standardization of financial statements and Why is the distinction important in evaluating the regulation question

  How much have accumulated after taxes

Tina contributed $2,400 after taxes to Roth 401(k); leaves in account until retires in 40 years age 63, which earns annual 8 percent before tax rate; marginal tax rate 30 percent. How much have accumulated after taxes if she withdraws initial cont..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd