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Onassis Catering is a Greek company that provides passenger and crew meals to airlines operating out o two international airports in Athens and Corfu. The operations at the two airports are managed separately and top management believes that there may be benefits to greater sharing of information between the two operations To better compare the two operations, an ABC system has been designed with the active participation of the managers at both airports. The ABC system is based on the following activity cost pools and activity measures Activity Cost Pool Meal preparation Flight-related activities Customer service Other (costs of idle capacity and Activity Measure Number of meals Number of flights Number of customers organization-sustaining costs) NA The operation at Athens International Airport (AIA) serves 1 million meals annually on 5,000 flights for 10 different airlines. (Each airline is considered one customer.) The annual cost of running the AIA airport operation, excluding only the costs of raw materials for meals, totals 3,843,250. Note The currency in Greece is the euro, denoted by . Annual Cost of the AIA Operation Cooks and Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs delivery personnel wages 3,100,000 35,750 240,000 85,000 212,500 170,000 Total cost 3,843,250

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