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12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Jordan Airlines is a small airline that occasionally carries overload shipments for the
12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Jordan Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never- Fall is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Jordan to carry the excess. Jordan contracts with independent pilots to fly its planes on a per-trip basis. Jordan recently purchased an airplane that cost the company $6,120,000. The plane has an estimated useful life of 25,500,000 miles and a zero salvage value. During the first week in January, Jordan flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Jordan paid $320 for the pilot and $270 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $270 for the pilot and $135 for fuel. The round trip between Chicago and San Francisco is approximately 4,500 miles and the round trip between Chicago and New York is 1,800 miles. Required a. Select if the costs mentioned below are direct or indirect b. Determine the total cost of each trip. Complete this Required A Required B Select If the costs mentioned below are direct or indirect. Pilot Fuel Depreciation Required A Required B> Complete this question by entering your answers in the tabs below. Required A Required B Determine the total cost of each trip. (Do not round intermediate calculations.) Chicago to San Francisco Chicago to New York Total cost
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