Check my work Problem 7-22 Activity Ras s 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. 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 Activity cost Pool Meal preparation Flight-related activities Customer service Other (costs of idle capacity and Activity Meas Number of meals Number of flights Nunber of customers organization-sustaining costs) NA 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 3,706,550. Note : The currency in Greece is the euro, denoted by Annual Cost of the AIA Operation Cookn and delivery personnel wagen Kitchen suppliers Chef salaries Equipment depreciation Administrative vages and salaries Buiiding costs 3,020,000 35,150 228,000 77,000 192,500 154,000 Total cont 3,706,650 Saved Help Save & Exit Submit Check my work Distribution of Resource Consumption across Activities at the AIA Operation Meal Flight- Customer otal 1001 100 100 1008 1000 100 Preparation Related Serv 20t oe 208 oe 25% 0s 0t ot 58 ot 58 35t 25% 1008 75 Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative vages and salaries Building costs 100% 35 65t 08 08 40 0s 501 ot Required 1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a O wherever it is required.) Flight- Cu Other Totals Service Cooks and delivery personnel wages Kitchen suppliep Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total coet Total cost 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 O wherever it is required.) Preparation Flight-Related Customer 1,000,000 meals 5,000 flights Service 10 flights airlines Activity at AIA Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost 0.0000 0.00 3. Not available in Connect