Onassis Catering is a Greek company that provides passenger and crew meals to airlines operating out of two internationa

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Onassis Catering is a Greek company that provides passenger and
crew meals to airlines operating out of two international airports
in Athens and Corfu. The operations at the two airports are managed
separately, and top management believes that there may be benefits
to greater sharing of information between the two operations.
To better compare the two operations, an ABC system has been
designed with the active participation of the managers at both
airports. The ABC system is based on the following activity cost
pools and activity measures:
Activity Cost PoolActivity MeasureMeal preparationNumber of
mealsFlight-related activitiesNumber of flightsCustomer
serviceNumber of customersOther (costs of idle capacity and
organization-sustaining costs)NA
The operation at Athens International Airport (AIA) serves 1
million meals annually on 5,000 flights for 10 different airlines.
(Each airline is considered one customer.) The annual cost of
running the AIA airport operation, excluding only the costs of raw
materials for meals, totals €3,816,600. (Note: The
currency in Greece is the euro, denoted by €.)
To help determine the activity rates, employees were interviewed
and asked how they divided their time among the four major
activities. The results of employee interviews at AIA are displayed
below:
Required:

Onassis Catering Is A Greek Company That Provides Passenger And Crew Meals To Airlines Operating Out Of Two Internationa 1 (37.77 KiB) Viewed 64 times

Required: 1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) Meal Preparation Flight-Related Customer Service Other Totals Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost 2. Compute the activity rates for the activity cost pools. (Round your activity rates for meal preparation to 4 decimal places and flight-related to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.) Activity at AIA Meal Preparation 1,000,000 meals Flight-Related 5,000 flights Customer Service 10 airlines Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost