Question 01: 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 Measure Number of als Number of lights Nordlastomers Veal preparation ed activities Dustomer service..... Other (costs of de capacity and organisation sustaining costs) ..... The operation at Athens International Airport (AIA) serves 1.2 million meals annually on 13,650 flights for 12 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 3,675,000. Note: The currency in Greece is the euro, denoted by . 000 som Dools and delivery personnel ages.. Kitchen supplies............ Che sare........ . Equipment depreciation........... Administrative wages and stories....... Building costs........... . Totspot 5500 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 Flat Customer Preparation Related Service Other Total Cooks and delivery 75 Kitchen supplies................... Die salaries....... Equipment depreciation.......... Administrative wages and stories... Building costs 0% 0% 0 100% 0% 00% a. Perform the first stage allocation of costs to the activity cost pools. [4 Marks] b. Compute the activity rates for the activity cost pools. [6 Marks]