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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

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 Activity Measure
Meal preparation Number of meals
Flight-related activities Number of flights
Customer service Number of customers
Other (costs of idle capacity and 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 3,843,250. Note : The currency in Greece is the euro, denoted by .

Annual Cost of the AIA Operation
Cooks and delivery personnel wages 3,100,000
Kitchen supplies 35,750
Chef salaries 240,000
Equipment depreciation 85,000
Administrative wages and salaries 212,500
Building costs 170,000
Total cost 3,843,250

To help determine the activity rates, employees were interviewed and asked how they divided their time among the four major activities. The results of employee interviews at AIA are displayed below:

Distribution of Resource Consumption across Activities at the AIA Operation
Meal Preparation Flight- Related Customer Service Other Total
Cooks and delivery personnel wages 75 % 20 % 0 % 5 % 100 %
Kitchen supplies 100 % 0 % 0 % 0 % 100 %
Chef salaries 35 % 20 % 40 % 5 % 100 %
Equipment depreciation 65 % 0 % 0 % 35 % 100 %
Administrative wages and salaries 0 % 25 % 50 % 25 % 100 %
Building costs 0 % 0 % 0 % 100 % 100 %

Required: 1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) 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 0 wherever it is required.)

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