Celene laughed at an image eBook Calculator Direct Method, Variable versus Fixed Costing and Performance Evaluation AirBorne is a small airline operating out of Boise, Idaho. Its three flights travel to Salt Lake City, Reno, and Portland. The owner of the airline wants to assess the full cost of operating each flight. As part of this assessment, the costs of two support departments (maintenance and baggage) must be allocated to the three flights. The two support departments that support all three flights are located in Boise (any maintenance or baggage costs at the destination airports are directly traceable to the individual flights). Budgeted and actual data for the year are as follows for the support departments and the three flights: Use the rounded values for subsequent calculations. Support Centers Flights Maintenance Baggage Salt Lake City Reno Portland Budgeted data: Fixed overhead $20,000 $18 $240,000 $30,000 $150,000 $64,000 8 Variable overhead Hours of flight time Number of passengers Actual data: 8 8 NON N Fixed overhead $235,000 $80,000 $156,000 $33,000 Variable overhead $11,000 Hours of flight time 1,800 8,000 4,200 16,000 Number of passengers * Normal activity levels. Check My Work Previous Next > All work saved. Email Instructor Save and Exit Submit Assignment for Grading eBook Calculator Round all allocation ratios and variable rates to four significant digits. Round all allocated amounts to the nearest dollar. Required: 1. Using the direct method, allocate the support service costs to each flight, assuming that the objective is to determine the cost of operating each flight. Allocation ratios for fixed costs SLC Reno Portland Hours of flight time Number of passengers Variable rates: Maintenance: per flight hour Baggage: per passenger Cost Allocation SLC Reno Portland Maintenance-fixed: Maintenance-variable: Baggage-fixed: Baggage-variable: Check My Work Submit Assignment for Gradin Email Instructor Save and Ext All work saved. Muneralice Heu: Maintenance-variable: Baggage-fixed: Baggage-variable: 2. Using the direct method, allocate the support service costs to each flight, assuming that the objective is to evaluate performance. SLC Reno Portland $ Maintenance-fixed: Maintenance-variable: Baggage-fixed: Baggage-variable: Check My Work All work saved. Email Instructor Save and Exit