Today, a commercial air cargo flight on a planned non-stop flight from Stockholm, Sweden, to Johannesburg, South Africa went down in the Sahara Desert in North Africa after a technical fault interrupted fuel flow to its engines. The crew made a successful emergency landing at an abandoned WWII airbase, but the aircraft soon came under attack by a band of rebel tribesmen who are at war with their government, setting it afire and destroying the cargo. All nations having any connection to the cargo and the flight have ratified the Montreal Convention. Analyze the extent of the airline's liability, if any, to the shippers for destruction of their cargo, explaining your decision process clearly.

howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?

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Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.