The Chart Below Shows the Amount Spent by Three U

question 73

Multiple Choice

The chart below shows the amount spent by three U.S. airlines to fly one available seat one mile in the fourth quarter of 2000. $\begin{array} { | l | l | l | l | } \hline \text { Airline } & \text { United } & \text { American } & \text { SouthWest } \\\hline \text { Cost } & 11.3 \text { cents } & 11.0 \text { cents } & 7.8 \text { cents } \\\hline\end{array}$ Suppose that, on a 3000-mile New York-Los Angeles flight, United, American and SouthWest flew a total of 190 empty seats, costing them a total of $60,900. If United had three times as many empty seats as American, how many empty seats did each of these three airlines carry on its flight

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Definitions:

Units Transferred

The quantity of goods moved from one production process or department to another in the manufacturing process.

First-In, First-Out Method

An inventory valuation method where goods purchased or manufactured first are sold or used first.

Equivalent Units

A concept in process costing that converts partially completed units into a number of fully completed output units.

Conversion Costs

Costs incurred to convert raw materials into finished goods, including both direct labor and manufacturing overhead.