Problem 7-22 Activity Rates and Activity-Based Management (LO2, O3] 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 (costs 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 5000 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 3,816,600. Note The currency in Greece is the euro, denoted by Annual cost of the Operation Cooks and delivery personnel wages 3,000,000 Kitchen supplies 43,100 Chef salaries 237,000 Equipment depreciation 63.000 Administrative woes and salaries 207,500 Activate Window 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 3,816,600 Note The currency in Greece is the euro, denoted by Annun Cost of the ATA Operation Cooks and delivery personnel wages 63,080.000 Kitchen supplies 43,200 Chef salaries 237,000 Equipment depreciation 83.ee Administrative wages and salaries 207.500 Buliding costs 166,000 Total cost 13,816, 680 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 ATA Operation Customer Service OX other 75% Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative ways and salaries Building costs Men Preparation Related 2015 100 ex 35% 65% ON ON 25 ex 0 Total TO 100% 100% 100% 5% ON SK 353 25 100% 20% 50 100% Activate Winde L LORO Required: 1. Perform the first stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input o O wherever it is required.) Meu Preparation Flight Related Customer Service Other Totals 0 Cooks and delivery personnel wagos Kitchen supplies Chef salarios Equipment depreciation Administrative wages and salaries Building costs Total cost 0 0 0 e 0 0 0 E 0 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.) Moal Customer Activity at AIA Proparation Flight Related Service 10 1,000,000 meals 5,000 flights nirlines Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs Total cost 0.0000 000 0