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Problem 12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Adams Airlines is a smali airline that occasionally camies overload shipments for
Problem 12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Adams Airlines is a smali airline that occasionally camies overload shipments for the ovemight delivery company Never-Fail, Inc NeverFail is a multimilion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Adams to carry the excess. Adams contracts with independent pilots to fly its planes on a per-trip basis. Adams recently purchased an airplane that cost the company $4,921,000. The plane has an estimated useful itfe of 25,900,000 miles and a zero salvage value During the first week in January. Adams flew two trips. The first trip was a round trip flight from Chicago to San Franciseo, for which Adams paid $420 for the ptiot and $370 for fuet. The second flight was a round trip from Chicago to New York. For this trip, it paid $370 for the pilot and $185 for fuel. The round trip between Chicago and San Francisco is approximately 4,500 miles and the round tip between Chicago and New York is 1.800 miles. Required a. Select it the costs mentioned below ate direct or indirect. b. Determine the total cost of each trip. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Select if the costs mentioned below are direct or indirect. Complete this question by entering your answers in the tabs below. Determine the total cost of each trip. (Do not round intermediate calculations.)
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