Eastern Skies Airlines has three flights that depart from New York City and arrive in Chicago every day. The three flights are as follows: Flight Number Flight Departure Time Flight Frequency 57 8:00 AM 7 days per week 85 10:00 AM 7 days per week 94 11:30 AM 7 days per week Each flight uses a jet with a capacity of 180 seats. The airline measures the utilization of the aircraft by passenger load. Passenger load is the number of seats sold divided by the number of available seats on a flight for a time period. The following operating data are available for June: Flight Number Number of Seats Sold 57 5,130 85 2,592 94 2,376 a. Determine the available seat capacity for each flight number for June. fill in the blank 1 b. Determine the passenger load for each flight number for June. Flight Number Passenger Load 57 fill in the blank 2 % 85 fill in the blank 3 94 fill in the blank 4 c. What recommendations could you provide Eastern Skies based on the passenger load data?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Passenger load on a flight
Eastern Skies Airlines has three flights that depart from New York City and arrive in Chicago every day. The three flights are as follows:
| Flight Number | Flight Departure Time | Flight Frequency | |||
| 57 | 8:00 AM | 7 days per week | |||
| 85 | 10:00 AM | 7 days per week | |||
| 94 | 11:30 AM | 7 days per week |
Each flight uses a jet with a capacity of 180 seats. The airline measures the utilization of the aircraft by passenger load. Passenger load is the number of seats sold divided by the number of available seats on a flight for a time period. The following operating data are available for June:
| Flight Number | Number of Seats Sold | |
| 57 | 5,130 | |
| 85 | 2,592 | |
| 94 | 2,376 |
a. Determine the available seat capacity for each flight number for June.
fill in the blank 1
b. Determine the passenger load for each flight number for June.
| Flight Number | Passenger Load | ||
| 57 | fill in the blank 2 | % | |
| 85 | fill in the blank 3 | ||
| 94 | fill in the blank 4 |
c. What recommendations could you provide Eastern Skies based on the passenger load data?
Gien,
Eastern skies Airlines each Flight has a seating capacity of 180 seats.
Each Flight Operates 7 days in a week of June month.
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