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 Meature Meal preparation Number of peals Flight related activities Number of flights Customer service Number of customer's 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 4,016,500. (Note: The currency in Greece is the euro, denoted by .) Annual Cost of the AIA Operation Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost 3,200,000 39,000 255,000 95, eee 237,500 190,000 4,016,500 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: Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Distribution of Resource Consumption across Activities at the AIA Operation Meal Flight- Customer Preparation Related Service Other Total 75% 20% 5% 100% 100% 0% ex OX 188% 35% 20% 40% 5% 100% 65% B% 35% 100% ex Sex 25% 100% 0% ox ex 100% 100% 25% Requirect 1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a O wherever it is required.) Meal Preparation Flight-Related Customer Service Other Totals 0 0 0 Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost 0 0 0 0 DE 0 D 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 wherever it is required.) Activity at AIA Meal Preparation 1,000,000 meals Flight-Related 5,000 nights Customer Service 10 airbties Cooks and delivery personnel wages Kitchen supplies Chef salanes Equipment depreciation Administrative wages and sales Building costs Total cost 00000 000
