ABC Airlines is a cargo air freight company and plans to add two new routes: Victoria to Los Angeles (Route 105) and Calgary to San Francisco (Route 106).

The company is setting its rate charges for the two routes and expects to have:

625	Containers for Route 105
375	Containers for Route 106
1000
In addition, the company must complete regulatory forms as follows:
70	Forms per Flight for Route 105
30	Forms per Flight for Route 106
100
Preparation time it takes to load the containers per flight:
110	Hours per Flight for Route 105
120	Hours per Flight for Route 106
230
The company's total costs for the year are expected to be:
$600,000	Total Container Handling
$250,000	Total Regulatory Approval

Instructions

Under a traditionally-based accounting system, using container loads as basis for allocating overhead:

Determine the amount of overhead that will be assigned to Route 105.

Determine the amount of overhead that will be assigned to Route 106.

If the company switches to an ABC accounting system, then use the regulatory forms and hours to load containers to allocate overhead costs.

Determine the amount of overhead that will be assigned to Route 105.

Determine the amount of overhead that will be assigned to Route 106.