Assignment 5 Saved Help Save & Exit Submit Problem 7-22 Activity Rates and Activity-Based Management (LO2, LO3) Onassis Catering is a Greek company that provides passenger and crew meals to airlines operating out of two international airports in Athens and Corfu. The operations at the two airports are managed separately, and top management believes that there may be benefits to greater sharing of information between the two operations. 25 points To better compare the two operations, an ABC system has been designed with the active participation of the managers at both airports. The ABC system is based on the following activity cost pools and activity measures: Skipped Activity Cost Pool Meal preparation Flight-related activities Customer service Other (costs of idle capacity and organization-sustaining costs) Activity Measure Number of meals Number of flights Number of customers eBook References The operation at Athens International Airport (AIA) serves 1 million meals annually on 5,000 flights for 10 different airlines. (Each airline is considered one customer.) The annual cost of running the AIA airport operation, excluding only the costs of raw materials for meals, totals 3,989,850. Note: The currency in Greece is the euro, denoted by . Annual Cost of the AIA Operation Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs 3,180,000 46,350 252,000 93.000 232,500 186,000 Total cost 3,989,850 Assignment 5 Saved Help Save & Exit Submit To help determine the activity rates, employees were interviewed and asked how they divided their time among the four major activities. The results of employee interviews at AIA are displayed below: Distribution of Resource Consumption across Activities at the AIA Operation Customer Service 25 Other 75% points Meal Plight- Preparation Related 20% 100% 359 207 65% 0% 408 Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Skipped Total 100% 100% 100% 100% 100% 100% 58 35% 256 100% 25% 50% 0 eBook Required: 1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) References Meal Preparation Flight- Related Customer Service Other Totals Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost 0 0 0 0 0 eBook 2. Compute the activity rates for the activity cost pools. (Round your activity rates for meal preparation to 4 decimal places and flight-related to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.) References Activity at AIA Meal Preparation 1,000,000 meals Flight-Related 5,000 flights Customer Service 10 airlines Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost | 0.0000 0.00 0