4 000 730 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 Total Number of flights 360 200 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 Jet Fuel K4 000 000 K18 000 000 K3 000 000 Crew costs K2 000 000 K1000 000 Other Costs K1 000 000 K2 000 000 K2 500 000 K1 500 000 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 13 Marks