Spirit AeroSystems Spirit AeroSystems [5A5] 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 eet. Enhanced eet safety also plays a vital role in influencing cus tomers' choice of airline carriers. As a result, effective MRO management can not only boost an airline's safetyr ratings, but inuence travelers preferred carrier choice.l Thene are three overhead resources at 5:515: Machines, Mechanics, and Engineers. Machines include tools and equipment, as well as specialised computer software to diagnose and x electnonic faults with engine management system, for example. Three primary activities at SAS use these resources. The activities ane Maintenance, Repair, and Overhaul. The following table identifies the number of hours ofeach overhead resource that one hour of each activity consumes: Resource Hours Consumed . _ M.............. m Wm. For example, each hour of Maintenance activity consumes 3.00 Machine hours, 4.00 Mechanic hours, and 1.50 Engineer hours. In addition to consuming overhead resources, some activities consume supplies. Supplies cost is a variable cost, and it can he directlyr attributed to the use of the activity. This means that the co st 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 cost of$2,500. The following yearly information pertains to the three overhead resources used by the thnee activities. For the Machines overhead resounce, 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 33 1,500,000 and practical capacity was 3,?50 hours. Finally, the following table sum mariaes the number of hou rs of each activity recently consumed by three customers for their aircrafts' MRO services: Activity Hours Consumed Customer 1 Customer 2 Customer 3 Hours of Maintenance Activity 2?.50 3.00 21.00 Hours of Repair Activity 15.00 14.50 0.00 Hours of Overhaul Activity m 10.00 The gross profit for each ofthe three customers was identical, i.e., $ 130,000. Required: Use time-driven activity-based costing to answer the following questions about SAS's costs and profitability: 1. What is the capacity cost rate of each of the three overhead resources? (0.75 marks)