5e sol07-18 - 50.00% Wrong 16.67% Baggage -- var.: Rate:...

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Prob 7-18 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns C, E, G, and I. 1) Allocation ratios for fixed costs SLC Reno Portland Total Hours of flight time 2,000 4,000 2,000 8,000 25.00% 50.00% 25.00% 100.00% No. of passengers 10,000 15,000 5,000 30,000 33.33% 50.00% 16.67% 100.00% Variable rates: Maintenance Baggage Expected cost $30,000 = $3.75 $64,000 = $2.1333 Activity level $8,000 $30,000 Allocation based on budgeted activity SLC Reno Portland Maintenance -- fixed: Cost: $240,000 $60,000 $120,000 $60,000 Ratio: 25.00% 50.00% 25.00% Maintenance -- var.: Rate: $3.75 7,500 15,000 7,500 Flight hrs. 2,000 4,000 2,000 Baggage -- fixed: Cost: $150,000 49,995 75,000 25,005 Ratio: Wrong 33.33%
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Unformatted text preview: 50.00% Wrong 16.67% Baggage -- var.: Rate: $2.1333 Wrong 21,333 32,000 10,667 Passengers 10,000 15,000 5,000 $138,828 $242,000 $103,172 2) Allocation based on actual activity SLC Reno Portland Maintenance -- fixed: Cost: $240,000 $60,000 $120,000 $60,000 Ratio: 25.00% 50.00% 25.00% Maintenance -- var.: Rate: $3.75 6,750 15,750 9,375 Flight hrs. 1,800 4,200 2,500 Baggage -- fixed: Cost: $150,000 49,995 75,000 25,005 Ratio: Wrong 33.33% 50.00% Wrong 16.67% Baggage -- var.: Rate: $2.1333 Wrong 17,066 34,133 12,800 Passengers 8,000 16,000 6,000 $133,811 $244,883 $107,180...
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