Zippy Shipping Lines transports high-value freight across the Gulf of Mexico from New Orleans, Louisiana, to Miami,
Question:
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.
Step by Step Answer:
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill