FedEx Corporation uses operating costing for its delivery services. In February 2039, the company incurs $70,000,000 in costs allocated as follows:

• Fuel Costs: $30,000,000
• Salaries: $25,000,000
• Maintenance: $10,000,000
• Overhead: $5,000,000

Requirements:

• Classify each cost as direct or indirect.
• Perform an efficiency analysis for fuel consumption and maintenance.
• Prepare a cost allocation schedule using activity-based costing.
• Analyze the impact of cost control measures on profitability.
• Recommend ways to improve operational efficiency and reduce costs.