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need answer 25 On Catering is a Greek company that provides passenger and crew meals to airlines operating out of two international airports in Ather
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25 On Catering is a Greek company that provides passenger and crew meals to airlines operating out of two international airports in Ather and Corfu The operations at the two alports 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 mirports. The ABC system is based on the following activity cost pools and activity measures: Customer service oth cats of Tale capacity and do-sustaining costs) Number of meals Number of flights Number of customers NA The operation at Athens International Airport (AIA) serves 1 million meals annually on 5.000 flights for 10 different airlines (Each an is considered one customer.) The annual cost of running the AIA airport operation, excluding only the costs of raw materials for meal totals 4,333,800. Note The currency in Greece is the euro, denoted by ATA Operation Cooks and delivery personnel wages kitchen supplies Chef salaries Equipment depreciation Adecinistrative wages and salaries Building costs Total cost 63,380,000 50, 300 282,00 113, 0eo 282,500 226,000 4,333,00 1 of 4 E to help determine the activity rates, employees were interviewed and asked how they divided their time among the form betivities. The results of employee interviews at AIA are displayed below. 25 10 e 52 een Cooks and delivery personnel wages the supplies chef salaries Equent depreciation Administrative wages and salaries Duding costs 78% 100% 39% ze OX OX 25% ex 20x 40% 180 30% 0% 40% lex 30 sex 100% 100 1er Required 1. Perform the first stage allocation of costs to the activity cost pools. (Do not leave any empty spaces: input o O wherever required.) Fali Preparacion Customer Senes Tara 1004 Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciationStep by Step Solution
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