Problem $4-19$A $($Algo$)$ Cost allocation in a service industry LO $4-1,4-2,4-3$

Rooney Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never$-$Fail, Incorporated. Never$-$Fail is a multimillion$-$dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company$$s motto is $$We Never$-$Fail to Deliver Your Package on Time.$$ When Never$-$Fail has more freight than it can deliver, it pays Rooney to carry the excess. Rooney contracts with independent pilots to fly its planes on a per$-$trip basis. Rooney recently purchased an airplane that cost the company $$6,500,000.$ The plane has an estimated useful life of $25,000,000$ miles and a zero salvage value. During the first week in January, Rooney flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Rooney paid $$250$ for the pilot and $$200$ for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $$200$ for the pilot and $$100$ for fuel. The round trip between Chicago and San Francisco is approximately $4,700$ miles and the round trip between Chicago and New York is $1,500$ miles.

Required

Select if the costs mentioned below are direct or indirect.

Determine the total cost of each trip.