Vinita Ramaswamy recently acquired Wild Country Air. Wild Country has been in business for many years, and provides charter flights for remote fishing and camping enthusiasts. When the company originally began business, aircraft, insurance, and fuel were relatively inexpensive. Pilot salaries were by far the most significant cost factor and have continued to be used as the basis for allocating overhead. Heretofore, the company has classified all costs, other than pilot salaries, as overhead. The company prices trips to customers at 125% of "cost." Vinita is concerned about the appropriateness of the costing/pricing technique and has engaged you to study this issue, with a goal of improving Wild Country's overall operations. Aggregated data for the most recent year are:

Pilot salaries*	$140,000
Aircraft depreciation (4,500 engine hours)	450,000
Insurance (fixed annual cost)	250,000
Fuel ($7 per gallon)	630,000
Other costs	70,000
* Includes amounts paid for "wait time" that varies considerably by trip.

Sample data from three specific recent flights are as follows:

	Flight A	Flight B	Flight C
Pilot salaries	$200	$350	$225
Engine hours on flight	3	1	9
Fuel used	60 gals.	20 gals.	180 gals.

(a) Using the existing scheme, determine the overhead application rate and price for Flights A, B, and C. (b) Is "job" costing appropriate for a "nonmanufacturing" business like Wild Country? (c) Evaluate the merits of the overhead allocation scheme in use by the company.