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Clinton Airlines has three service departments: (1) ticketing, (2) baggage handling, and (3) engine maintenance. The service department costs are estimated for separate cost pools
Clinton Airlines has three service departments: (1) ticketing, (2) baggage handling, and (3) engine maintenance. The service department costs are estimated for separate cost pools formed by department and are allocated to two revenue-producing departments: (1) domestic flights and (2) international flights. Clinton does not differentiate between fixed and variable costs in making allocations. The following data relate to the allocations: (a) Allocate the service department costs to the revenue-producing departments using air miles as the allocation base
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