Avalonne purchesed an airplanr that cost the company 4 , 7 3 1 0 0 0 .
Fantastic news! We've Found the answer you've been seeking!
Question:
Avalonne purchesed an airplanr that cost the company The plane has an estimed useful life of miles and a zero salvage value During the first week in january Avallone flew two trips The first trip was roubd trip flight from chicago to san francisco for which allavolnne paid for a pilot and for fuel The second trip was a round trip between chicago and san franciso is approximately miles and the round trip between chicgo anr new york was miles The firm would like to compute the cost of each trip chicago to san franciso & chicago to new york
a Is the pilot expense a direct cost or indricet cost Explain Given that the firm would like to compute the cost of each trip
B Is the depreciation expense of the aitplane a direct cost of or indirect cost Explain? Given that the firm woukd like to compute each cost of each trip
Ccompute the total cost if the trip chicago to san francisco assuming the firm allocates depreciating expense based on the estimated useful life of miles Show how you calulate the allocation rate and the coat of allocated to the trip
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date: