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Benson Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never - Fail, Incorporated. Never - Fail is a
Benson Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company NeverFail,
Incorporated. NeverFail is a multimilliondollar company started by Wes Never immediately after he failed to finish his first accounting
course. The company's motto is We NeverFail to Deliver Your Package on Time." When NeverFail has more freight than it can
deliver, it pays Benson to carry the excess. Benson contracts with independent pilots to fly its planes on a pertrip basis. Benson
recently purchased an airplane that cost the company $ The plane has an estimated useful life of miles and a
zero salvage value. During the first week in January, Benson flew two trips. The first trip was a round trip flight from Chicago to San
Francisco, for which Benson paid $ for the pilot and $ for fuel. The second flight was a round trip from Chicago to New York.
For this trip, it paid $ for the pilot and $ for fuel. The round trip between Chicago and San Francisco is approximately
miles and the round trip between Chicago and New York is miles.
Required
a Select if the costs mentioned below are direct or indirect.
b Determine the total cost of each trip.
Complete this question by entering your answers in the tabs below.
Required
Select if the costs mentioned below are direct or indirect.
Pilot
Fuel
Depreciation
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