Dashboard eBook Direct Method, Variable versus Fixed Costing and Performance Evaluation 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 Mill 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 fights. The two support departments that support all three fights 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: Use the rounded values for subsequent calculations Support Centers Flights Reno Maintenance Portland Salt Lake City Baggage Budgeted data $240,000 $150,000 $20,000 $18,000 Fixed overhead $30,000 $30,000 $64,000 $5,000 6,000 Variable overhead $10,000 4,000 2,000 2.000 Hours of flight time Number of passengers 10,000 15,000 5,000 Actual data $235.000 $22,000 Fixed overhead $156,000 $29,500 $17,000 $11,000 $80,000 Variable overhead $33,000 $6.200 $5,800 1.800 4,200 Hours of fight time 2.500 6,000 8,000 16.000 Number of passengers "Normal activity levels the nearest dollar Round all allocation ratios and variable rates to four significant digits. Round all allocated amounts Required: eBook 1. Using the direct method, allocate the support service costs to each fight, assuming that the objective is to determine the cost of operating each flight Allocation ratios for fixed costs SLC Reno Portland 135,000 270,000 Hours of flight time Number of passengers Variable rates: Maintenance per flight hour Baggage per passenger Cost Allocation SLC Reno Portland Maintenance-foxed Maintenance-variable Baggage-fixed Baggage-variable 2. Using the direct method, allocate the support service costs to each fight, assuming that the objective is to evaluate performance SLC Reno Portland Maintenancefoxed: Maintenance variable: Previous Next Variable rates: Maintenance per light hour Baggage: per passenger Cost Allocation SLC Reno Portland Maintenance-foxed Maintenance-variable Baggage-fixed: Baggage-variable: 2. Using the direct method, allocate the support service costs to each night, assuming that the objective is to evaluate performance Reno SLC Portland Maintenance-fixed: Maintenance-variable: Baggage-fixed Baggage-variable