1. Boeing Co. is analyzing its production costs for a new aircraft model:

Requirements:

• Calculate the Marginal Cost per additional aircraft produced:
  • Variable Costs: $50,000,000
  • Fixed Costs: $20,000,000

• Implement Activity-Based Costing to allocate engineering and testing costs.
• Compare the costs calculated under Marginal Cost Accounting and ABC.
• Discuss how Standard Cost Accounting could enhance cost management in aircraft manufacturing.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$50,000,000
Fixed Costs	$20,000,000
Total Cost	$70,000,000