Question
Red Duv Aviation services small aircraft engines. The following is data from the small aircraft engine service department. Expected customers 50 Actual customers 60 Hourly
Red Duv Aviation services small aircraft engines. The following is data from the small aircraft engine service department.
- Expected customers 50
- Actual customers 60
- Hourly charge $55
- Expected time to complete each job 3 hours
- Actual time to complete each job 2.5 hours
Based on the information above, compute the revenues for Red Duv Aviation's small engine repair division
- $250 more than expected
- $250 less than expected
- $750 more than expected
- The same as expected
Based on the above information what would you recommend Red Duv Aviation do from a managerial accounting perspective? Check all that apply:
a. Nothing
b. Evaluate labor hours per job
c. Evaluate plant capacity
d. Evaluate hourly service rate
e. Evaluate Breakeven point
f. Evaluate target profit goal
g. Evaluate advertising budget
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