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5. The manager of the air freight company in problem 4 would like a finer analysis of the overhead costs to better manage his resources. Cost data on the $425K overhead costs exists to further breakdown where the costs are generated: Hangar Rent Supervision Accounting Department $300K $100K $25K He also has data on possible related cost drivers to use for cost allocation of the overhead budget subcategory (Long Haul:LH, Short Haul:SH): LH 2000 SH 4000 20 Hangar floor space (square feet) Number of pilots Number of billing transactions Air miles flown Direct Material and Labor 400 950K $600K 1200 100K $300K a) (1 pt) For an ABC type Cost Accounting System, what do you think are the best cost drivers for each below: Hangar Lease Supervision Accounting Department b) (4 pts) Using your cost drivers from (a) above, what is the total cost for providing LH services
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