Zippy Shipping Lines transports high-value freight across the Gulf of Mexico from New Orleans, Louisiana, to Miami, Florida. The company competes directly with trucking lines and air carriers. Service companies often use multiple activity drivers based on hours, days, voyages, and so on, in determining the cost of providing services to clients.

A cost summary to deliver a load of cargo for a client is as follows:

a. Calculate the total cost of freight handling-loading.

b. Calculate the quantity of fuel consumed per voyage.

c. Calculate the crew cost per day.

d. Calculate the freight handling-unloading cost per hour.

e. Calculate the total cost of delivering the load of cargo.

f. Explain why a variety of rates were necessary to calculate the cost of providing shipping services.

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Service Freight handling-loading Fuel Cost Quantity $300 per hour 10 hours $0.33 per gallon Total Cost $50,000 Crew costs 1.5 days $ 3,000 Freight handling-unloading 12 hours $ 4,200 Total