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Problem 12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Jordan Airines is a smail altine that occasionally carries overioad shipments for

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Problem 12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Jordan Airines is a smail altine that occasionally carries overioad shipments for the overnight 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 Jordan to carry the excess. Jordan contracts with independent pilots to fly its planes on a per-trip basis. Jordan recently purchased an airplane that cost the company $6.507,000. The plane has an estimated useful life of 24,100.000 miles and a zero saivage value During the first week in January, Jordan flew two trips. The first tip was a round trip flight from Chicago to San Francisco, for which Jordan paid $270 for the pilot and $220 for fuel. The second flight was a round trip from Chicago to New York For this trip. it paid $220 for the pilot and $110 for fuel. The round trip between Chicago and San Francisco is approximately 4.200 miles and the tound trip between Chicago and New Yorkis 2,000 miles Required a. Select if the costs mentioned below are direct or indirect. b. Determine the total cost of each trip 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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