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World Airlines has three service departments: ticketing, baggage handling, and engine maintenance. The service department costs are estimated for separate cost pools formed by department

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World Airlines has three service departments: ticketing, baggage handling, and engine maintenance. The service department costs are estimated for separate cost pools formed by department and are allocated to two revenue-producing departments: domestic flights and international flights. World does not differentiate between fixed and variable costs in making allocations. The following data relate to the allocations: Allocate the service department costs to the revenue-producing departments using air miles as the allocation base

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