Charging for service activity costs Airporter Service Company operates sched uled coach service from Boston's Logan Airport
Question:
Charging for service activity costs Airporter Service Company operates sched¬
uled coach service from Boston's Logan Airport to downtown Boston and to Cam¬ bridge. A common scheduling service center at the airport is responsible for ticketing and customer service for both routes. The service center is regularly staffed to service traffic of 2400 passengers per week: two-thirds for downtown Boston passengers and the balance for Cambridge passengers. The cost of this ser¬ vice center is $7200 per week normally, but it is higher during weeks when addi¬ tional help is required to service higher traffic levels. The service center costs and number of passengers serviced during the five weeks of August follow:
How much of the service center costs should be charged to the Boston ser¬ vice, and how much to the Cambridge service?
Step by Step Answer:
Management Accounting
ISBN: 9780130101952
3rd Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker