Franklin Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc.Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. Thecompany's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it paysFranklin to carry the excess. Franklin contracts with independent pilots to fly its planes on a per-trip basis. Franklin recently purchasedan airplane that cost the company $6,318,000. The plane has an estimated useful life of 24,300,000 miles and a zero salvage value.During the first week in January, Franklin flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for whichFranklin paid $340 for the pilot and $290 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid$290 for the pilot and $145 for fuel. The round trip between Chicago and San Francisco is approximately 4,500 miles and the roundtrip between Chicago and New York is 1,400 miles.Requireda. Select if the costs mentioned below are direct or indirect.b. Determine the total cost of each trip.Complete this question by entering your answers in the tabs below.Required ARequirad BDetermine the total cost of each trip. (Do not round intermediate calculations.)Chicago to SanFranciscoChicago toNew YorkTotal cost< Required ARecuired B< Prev3 of 7 Franklin Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc.Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. Thecompany's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it paysFranklin to carry the excess. Franklin contracts with independent pilots to fly its planes on a per-trip basis. Franklin recently purchasedan airplane that cost the company $6,318,000. The plane has an estimated useful life of 24,300,000 miles and a zero salvage value.During the first week in January, Franklin flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for whichFranklin paid $340 for the pilot and $290 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid$290 for the pilot and $145 for fuel. The round trip between Chicago and San Francisco is approximately 4,500 miles and the roundtrip between Chicago and New York is 1,400 miles.Requireda. Select if the costs mentioned below are direct or indirect.b. Determine the total cost of each trip.Complete this question by entering your answers in the tabs below.Required ARequired B................................Select if the costs mentioned below are direct or indirect.......................................PilotFuelDepreciationRequired ARequired B< Prev3 of 7Next >

Direct costs are those costs which are directly related and associated with the production of a unit…

Answered: Franklin Airlines is a small airline…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Zachary 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 Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary recently purchased an airplane that cost the company $4,883,000. The plane has an estimated useful life of 25,700,000 miles and a zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Zachary paid $300 for the pilot and $250 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $250 for the pilot and $125 for fuel. The round…
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