AirBorne is a small airline operating out of Boise, Idaho. Its three flights travel to Salt Lake City, Reno, and Portland. The owner of the airline wants to assess the full cost of operating each flight. As part of this assessment, the costs of two support departments (maintenance and baggage) must be allocated to the three flights. The two support departments that support all three flights are located in Boise (any maintenance or baggage costs at the destination airports are directly traceable to the individual flights). Budgeted and actual data for the year are as follows for the support departments and the three flights:

Costs of maintenance are allocated based on hours of flight time. Costs of the baggage center are allocated based on the number of passengers.
Required:
1. Using the direct method, allocate the support service costs to each flight, assuming that the objective is to determine the cost of operating each flight.
2. Using the direct method, allocate the support service costs to each flight, assuming that the objective is to evaluate performance. Do any costs remain in the two support departments after the allocation? If so, how much?Explain.

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Support Centers Flights Maintenance Baggage Salt Lake City Reno Portland Budgeted data: Fixed overhead Variable overhcad Hours of flight time Number of passengers* $240,000 $150,000 $20,000 $18,000 $30,000 $30,000 $64,000 5,000 10,000 $6,000 4,000 2,000 10,000 5,000 5,000 2,000 Actual data: Fixed overhead Variable ovcrhcad Hours of flight time Number of passengers $235,000 $156,000 S22,000 $17,000 $29,500 $80,000 $33,000 $6,200 S11,000 $5,800 4,200 2,500 8,000 16,000 6,000 1,800 Normal activity levels