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[ The following information applies to the questions displayed below. ] Heartland Airways operates commuter flights in three states. Due to a political convention held
The following information applies to the questions displayed below. Heartland Airways operates commuter flights in three states. Due to a political convention held in Topeka, the airline added several extra flights during a twoweek period. Additional cabin crews were hired on a temporary basis. However, rather than hiring additional flight attendants, the airline used its current attendants on overtime. Ushanti Gaines worked the following schedule on August All of Gainess flights on that day were extra flights that the airline would not normally fly. Regular time: roundtrip flights between Topeka and St Louis hours Overtime: oneway flight from Topeka to Kansas City hours Gaines earns $ per hour and is paid time and a half when working overtime. Fringe benefits cost the airline $ per hour for any hour worked, regardless of whether it is a regular or overtime hour. How should the cost computed in requirement be treated for cost accounting purposes? Multiple Choice The overtime premium should be included in direct cost and allocated across all of the company's flights The overtime premium should be considered a direct cost and charged directly to the specific company flights. The overtime premium should be included in overhead and allocated across all of the company's flights a What type of cost is the $ multiple choice Outofpocket cost Average cost Marginal cost Opportunity cost Differential cost Sunk cost b To what flight, if any, is it chargeable? multiple choice August flight August flight Neither flight Compute the direct cost of compensating Gaines for her services on the flight from Topeka to Kansas City. Direct cost Compute the cost of Gaines's services that is an indirect cost.
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