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 (casts of Idle capacity and organization-sustaining costs) Activity Measure 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 airline is considered one customer.) The annual cost of running the AIA airport operation, excluding only the costs of raw materials for meals, totals 4,258,400. Note: The currency in Greece is the euro, denoted by . Annual Cost of the ATA Operation Cooks and delivery personnel wages 63,348,eee Kitchen supplies 42,900 Chef salaries 276,000 Equipment depreciation 109,000 Administrative wages and salaries 272,500 Building costs 218,000 Total cost 4,258,400 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 Total 100% Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Meal Flight- Preparation Related 70% 25% 100% ex 30% 20% 70% 0% ex 305 es 0% Customer Service ex 0% 40% ex 40% es Other 5X OX 10% 30% 30% 100% 100% 100% 100% 100% 100% its Required: 1. Perform the first stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; Input a wherever it is required.) eBook Print Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost ferences 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.) Meal Preparation 1,000,000 meals Flight Related 5,000 flights Customer Service 10 airlines Activity at AIA Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost
