Direct Method, Variable versus Fixed Costing and Performance EvaluationAirBorne 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 full 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 flights. The two support departments that support all three flights 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 Maintenance Baggage Salt Lake City Reno PortlandBudgeted data:           Fixed overhead$240,000 $150,000 $20,000 $18,000 $30,000  Variable overhead$30,000 $64,000 $5,000 $10,000 6,000  Hours of flight time*— — 2,000 4,000 2,000  Number of passengers— — 10,000 15,000 5,000Actual data:           Fixed overhead$235,000 $156,000 $22,000 $17,000 $29,500  Variable overhead$80,000 $33,000 $6,200 $11,000 $5,800  Hours of flight time— — 1,800 4,200 2,500  Number of passengers— — 8,000 16,000 6,000*Normal activity levels.Round all allocation ratios and variable rates to four significant digits. Round all allocated amounts to the nearest dollar.Required:1. Using the direct method, allocate the support service costs to each flight, assuming that the objective is to determine the cost of operating each flight.Allocation ratios for fixed costs SLCRenoPortlandHours of flight time   Number of passengers    Variable rates:Maintenance:$per flight hourBaggage:$per passenger Cost Allocation SLCRenoPortlandMaintenance—fixed:$$$Maintenance—variable:   Baggage—fixed:   Baggage—variable:    $$$ 2. Using the direct method, allocate the support service costs to each flight, assuming that the objective is to evaluate performance. SLCRenoPortlandMaintenance—fixed:$$$Maintenance—variable:   Baggage—fixed:   Baggage—variable:    $$$