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 PoolActivity MeasureMeal preparationNumber of mealsFlight-related activitiesNumber of flightsCustomer serviceNumber of customersOther (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 4,333,800. (Note: The currency in Greece is the euro, denoted by .)

Annual Cost of the AIA OperationCooks and delivery personnel wages3,380,000 Kitchen supplies 50,300 Chef salaries 282,000 Equipment depreciation 113,000 Administrative wages and salaries 282,500 Building costs 226,000 Total cost4,333,800

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 PreparationFlight- RelatedCustomer ServiceOtherTotalCooks and delivery personnel wages 70% 25% 0% 5% 100%Kitchen supplies 100% 0% 0% 0% 100%Chef salaries 30% 20% 40% 10% 100%Equipment depreciation 70% 0% 0% 30% 100%Administrative wages and salaries 0% 30% 40% 30% 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.)