360 Zambian Airways is an airline based in Zambia servicing both domestic and international routes Assume that the airline currently serves the Chipata, kasama and Kinshasa routes. The Management Accountant has compiled the following information about each of the three routes Chipata Kasama Kinshasa Total Number of Passengers 7200 14600 4 000 Total Number of flights 730 200 Total Revenues K14 400 000 K43 800 000 K16 000 000 Number of flight miles per flight 171 232 378 These three routes are serviced by an individual support division. The following activities with the associated costs have been identified: Overhead Cost Overhead Allocation Base Engineering Support K6 000 000 Number of flights Ground handling support K4 000 000 Number of passengers Office Administration K 700 000 Number of flights Marketing K 800 000 Number of passengers Other K 500 000 Total revenues The following costs can be traced to each of the three routes in a convenient manner: Chipata Kasama Kinshasa K4 000 000 K18 000 000 K3 000 000 K2 000 000 K2 500 000 K1 500 000 Jet Fuel Crew costs K1000 000 Other Costs K1 000 000 K2 000 000 Questions: A. Calculate the total cost assigned to each of the three routes using simple costing, assuming that overheads are allocated according to flight miles [3Marks) B. Calculate the cost per passenger assigned to each of the three routes using simple costing, assuming that overheads are allocated according to flight miles [3 Marks) C. Calculate the total cost assigned to each of the three routes using Activity Based Costing [20 Marks D. Calculate the cost per passenger assigned to each of the three routes using Activity Based Costing (3 Marks) E. Calculate the profit per passenger for each of the routes using Simple and Activity Based Costing [6 Marks] F. Identify one alternative cost allocation base for the first four activities identified in this problem and explain the cause and effect relationship between the indirect cost and your chosen cost allocation base [8 Marks) G. Why is Activity Based Costing preferred over simple costing? Give two brief reasons based on your answers provided for the questions above