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How many numbers of hours per customers 5. What is the total cost per hour of each activity? Provide the three activity costs separatel 6. What is the total activity Parately. customer-related costs separately. customer-related cost for each customer? Provide the thr

How many numbers of hours per customers 5. What is the total cost per hour of each activity? Provide the three activity costs separatel 6. What is the total activity Parately. customer-related costs separately. customer-related cost for each customer? Provide the thr

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please help me with my practice problems. i can't not get the same answer in the textbook. 

4. How many hours of the Mechanics resource did each customer consume? Provide the thr numbers of hours per customer separately. 5. What is the total cost per hour of each activity? Provide the three activity costs separately 6. What is the total activity-based customer-related cost for each customer? Provide the thr customer-related costs separately.
Transcribed Image Text:4. How many hours of the Mechanics resource did each customer consume? Provide the thr numbers of hours per customer separately. 5. What is the total cost per hour of each activity? Provide the three activity costs separately 6. What is the total activity-based customer-related cost for each customer? Provide the thr customer-related costs separately.
Spirit AeroSystems (SAS) provides aircraft maintenance, repair, and overhaul (MRO) services to the aviation industry. Competitors in the aviation industry increasingly recognize the importance of maintaining, repairing, and overhauling their fleet. Enhanced fleet safety also plays a vital role in influencing customers' choice of airline carriers. As a result, effective MRO management can not only boost an airline's safety ratings, but influence travelers preferred There are three overhead resources at SAS: Machines, Mechanier choice.¹ and Engineers. Machines include tools and equipment, as well as specialised computer software to diagnose and fix electronic faults with engine management system, for example. Three primary activities at SAS use these resources. The activities are Maintenance, Repair, and Overhaul. The following table identifies the number of h activity consumes: Resource Hours Consumed by Activities Machine Hours Mechanic Hours Engineer Hours of each overhead resource that one hour of each hours. Maintenance 8.00 4.00 1.50 Repair 11.00 14.00 5.00 For example, each hour of Maintenance activity consumes 8.00 Machine hours, 4.00 Mechanic hours, and 1.50 Engineer wananching of Lafarge to cost is a In addition to consuming overhead resources, some activities consume supplies. variable cost, and it can be directly attributed to the use of the activity. This means that the cost of the supplies is an integral part of the total cost of each of these activities. Each hour of the Repair activity has a Supplies cost of $1,000. Each hour of the Overhaul activity has a Supplies omer 1 Activity Hours Consumed Hours of Maintenance Activity Hours of Repair Activity Hours of Overhaul Activity The gross profit for each of the three customers was identical, i.e., $180,000. 27.50 15.00 3.00 The following yearly information pertains to the three overhead used by the three activities. For the Machines overhead resource, total cost was $500,000 and practical capacity was 5,000 hours. For the Mechanics overhead resource, total cost was $1,200,000 and practical capacity was 8,000 hours. For the Engineers overhead resource, total cost was $1,500,000 and practical capacity was 3,750 hours. Finally, the following table summarizes the number of hours of each activity recently consumed by three customers for their aircrafts' MRO services: Overhaul 6.00 10.00 15.00 Customer 2 3.00 14.50 9.00 Customer 3 21.00 0.00 10.00 Xxx stov Arborn 000 org23)
Transcribed Image Text:Spirit AeroSystems (SAS) provides aircraft maintenance, repair, and overhaul (MRO) services to the aviation industry. Competitors in the aviation industry increasingly recognize the importance of maintaining, repairing, and overhauling their fleet. Enhanced fleet safety also plays a vital role in influencing customers' choice of airline carriers. As a result, effective MRO management can not only boost an airline's safety ratings, but influence travelers preferred There are three overhead resources at SAS: Machines, Mechanier choice.¹ and Engineers. Machines include tools and equipment, as well as specialised computer software to diagnose and fix electronic faults with engine management system, for example. Three primary activities at SAS use these resources. The activities are Maintenance, Repair, and Overhaul. The following table identifies the number of h activity consumes: Resource Hours Consumed by Activities Machine Hours Mechanic Hours Engineer Hours of each overhead resource that one hour of each hours. Maintenance 8.00 4.00 1.50 Repair 11.00 14.00 5.00 For example, each hour of Maintenance activity consumes 8.00 Machine hours, 4.00 Mechanic hours, and 1.50 Engineer wananching of Lafarge to cost is a In addition to consuming overhead resources, some activities consume supplies. variable cost, and it can be directly attributed to the use of the activity. This means that the cost of the supplies is an integral part of the total cost of each of these activities. Each hour of the Repair activity has a Supplies cost of $1,000. Each hour of the Overhaul activity has a Supplies omer 1 Activity Hours Consumed Hours of Maintenance Activity Hours of Repair Activity Hours of Overhaul Activity The gross profit for each of the three customers was identical, i.e., $180,000. 27.50 15.00 3.00 The following yearly information pertains to the three overhead used by the three activities. For the Machines overhead resource, total cost was $500,000 and practical capacity was 5,000 hours. For the Mechanics overhead resource, total cost was $1,200,000 and practical capacity was 8,000 hours. For the Engineers overhead resource, total cost was $1,500,000 and practical capacity was 3,750 hours. Finally, the following table summarizes the number of hours of each activity recently consumed by three customers for their aircrafts' MRO services: Overhaul 6.00 10.00 15.00 Customer 2 3.00 14.50 9.00 Customer 3 21.00 0.00 10.00 Xxx stov Arborn 000 org23)
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